Bitcoin Expected To Reach New Highs In Q4 Amidst Positive Market Trends

Cryptocurrency expert DecodeJar says that the future trend of Bitcoin is uncertain due to many factors that cause price fluctuations. Look at past patterns and Elliott wave theory, DecodeJar suggest Potential movements in the value of Bitcoin. However, it remains difficult to accurately time the cryptocurrency market as many unpredictable events shape prices.

Elliott Wave Theory proposes that market trends follow a distinct five-wave pattern. According to DecodeJar, Bitcoin is currently in its fourth wave of a broader three-wave cycle. Historically, fourth waves tend to be prolonged and complex before the final wave resolves.

DecodeJar investigates how Bitcoin’s value generally increases over the fall and winter months. As shown in their chart, Bitcoin tends to perform well from October to December. Last year, Bitcoin prices followed this seasonal pattern, moving predictably based on historical averages.

Source: Glassnode

The graph included in the tweet shows Bitcoin’s average monthly performance from August 2010 to April 2023. This graph shows that November had the highest average monthly return at 40.1%, followed by December at 12.3%. September was the only month where the average return was negative, at -5.3%.

Bitcoin price analysis

Source: TradingView

Bitcoin’s recent rally has reached a key point at the 20-day exponential moving average of $65,900, an important level that needs to be closely monitored. If the price drops sharply from this level, it could indicate that the bears are selling on the upswing. This could result in a retest of the $60,700 to $59,600 support zone.

However, if the price moves above the moving average, it would indicate that the pair could fluctuate between $60,700 and $73,777 over a period of time. Bulls need to push the price above the overhead resistance to pave the way for a potential rally to $85,000.

We can immediately see that the bulls have the upper hand as the moving average crosses the 4-hour chart. The pair could face difficulties between $68,000 and $69,000. However, if it breaks out of this range, it could approach $70,000. Based on technical indicators, market trends appear to be bullish, suggesting a possible price increase in the crypto market.

The positive outlook could change if costs decrease and fall below the moving average. This situation can lead to intense selling when prices rise. After that, the value of the pair could fall to $63,200 and then $60,700.

Related reading | BTC ETF rebounds after recent streak of outflows with $60 million in net inflows

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