Bitcoin Maintains Uptrend but Faces Potential Threat
Bitcoin (BTC) has been trading above the 50 Exponential Moving Average (EMA) for over a month, indicating an uptrend. However, the BTC price has been making lower highs in the past 30 days, putting this monthly uptrend at risk. Bitcoin Futures are struggling below the 50-day Moving Average, posing a potential threat to the uptrend support zone.
Crypto trader expert Jim Wyckoff warns that Bitcoin’s uptrend is in jeopardy as prices have penetrated a daily bar chart’s uptrend line. He emphasizes that bulls need to show fresh power soon in order to restart the price uptrend.
“October Bitcoin futures prices are weaker in early U.S. trading Wednesday. The bears have gained a bit of momentum at mid-week, as prices have penetrated on the downside, an uptrend line drawn on the daily bar chart. Bulls need to step up and show fresh power soon in order to restart the price uptrend.”
— Jim Wyckoff
Despite these concerns, the Moving Average Convergence/Divergence (MACD) still indicates a bullish momentum for Bitcoin Futures. Additionally, the 4-hour Relative Strength Index (RSI) suggests a buying opportunity in the spot market, potentially allowing the current trend to continue.
Bitcoin Price Analysis
As of now, BTC is priced at $27,084, representing a 1.46% loss in the last 24 hours compared to its previous price of $27,516 per Bitcoin.
The outcome of macroeconomic factors could significantly impact Bitcoin’s ongoing uptrend in both spot and derivatives markets. Investors are eagerly awaiting the release of U.S. CPI data on October 12, as it has the potential to deeply influence BTC prices. A lower-than-expected CPI could support Bitcoin’s uptrend, while a higher-than-expected CPI may lead to a breakout from the mentioned support zone.
Hot Take: The Fate of Bitcoin’s Uptrend Hangs in the Balance
Bitcoin’s current uptrend faces a crucial test as it battles to stay above the 50-day Moving Average and overcome recent bearish pressures. While indicators like the MACD and RSI suggest a potential continuation of the trend, the upcoming release of U.S. CPI data will play a significant role in determining Bitcoin’s fate. Investors should closely monitor these developments to assess whether the current uptrend will persist or face a potential breakdown.
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