The increase in volume and a break above a key trend line put the price of Bitcoin back on track at $14,000
As the weekend approaches, the price of Bitcoin ( BTC ) seems set to close the month with a remarkably strong performance, which has many bulls asking for a new record high above $20,000 in the near future.
Traders attribute these high estimates to the fact that BTC appears to have reached $12,000 to $12,500 as support and, barring some unexpected price implosion, Bitcoin is on its way to painting a beautiful monthly candle.
Other ‚optimistic‘ evidence comes from today’s options and futures expiration, which saw $450 million in open futures contracts expire on October 28.
According to Cointelegraph employee Marcel Pechman :
„The expiration of the most recent options for BTC and Ether really brought nothing surprising. Deribit is back on 137K BTC options against 150K open yesterday. Meanwhile, the CME has $215 million futures contracts due on October 30, but this seems to have had minimal impact on the price, if any. Once again, the phenomenon of falling prices before and after BTC futures maturing no longer exists. This reaffirms the bullish argument for the recent race, despite the negative news from Asian stock exchanges and Tether. ”
Currently, the BTC is trading above $13.5K, and the 4-hour chart shows the digital asset reaching higher and lower minimums as the price reaches a narrower range.
Even if the price remains above the 20-day moving average, it would not be unexpected to see it range between $13,500 and $12,900 over the weekend and early next week.
If the price of The News Spy is able to rise above the trend line at $13,620 and secure a 4-hour close above it, then a further boost to a new 2020 record above $13,859 is possible.
Currently, as trading volume increases, the moving average convergence indicator shows that the MACD has crossed above the signal line (orange) and the histogram shows an increase in momentum. The RSI is also above the middle line, reaching 60, but in the last few days, the BTC has found resistance at $13,660.
In the event that BTC loses its current momentum and drops below $13,100, there is support at $12,800. Failure to hold at this level opens the door for a new test of the next support at $12,000 and below that $11,500.
From a bird’s point of view, the current Bitcoin price action is encouraging and the digital asset is clearly in a strong upward trend with room to rise further.
The same cannot be said for altcoins that have suffered an absolute beating throughout this week. At the time of writing, the price of Ether ( ETH ) has dropped 5.8% as the top altcoin struggles to recover $400 as support. Chainlink (LINK) fell 6.74% and Binance Coin (BNB) lost 6.10%.
According to CoinMarketCap , the overall market capitalization of the cryptomoeda is now at $396.6 billion and the Bitcoin dominance rate is 63.5%.