- Bitcoin is testing the $31,500 resistance.
- Daily closes above $31,500 can support the uptrend.
- Breaking the $28,600 resistance may open the path for an uptrend towards $34,000.
Bitcoin is currently testing the $31,500 level, and daily closes above this level indicate the potential for the price to continue its uptrend. As mentioned in the previous analysis, breaking the $28,600 resistance could pave the way for an uptrend towards $34,000.
Mid-Term Bitcoin Analysis
When we look at the daily technical chart of Bitcoin, as stated in the analysis on October 17, the critical resistance level was noted as $28,600. Coinotag analysts mentioned that if BTC manages to achieve daily closes above this level, it would sustain the uptrend.
Today, BTC experienced a 3.80% increase and is currently trading around $31,100. However, if BTC fails to achieve daily closes above the $31,500 resistance, it could initiate a downtrend with a target of the $28,600 – $28,300 support area.
Nonetheless, if the BTC price garners strong buying reactions within this $28,600 – $28,300 range, it may aim to reinitiate the uptrend, targeting $34,000.
SHORT-TERM BTC ANALYSIS
When we focus on the short-term technical chart of Bitcoin, we see that it’s trading near a significant resistance level around $31,500. If BTC manages to achieve 4-hour candle closes above the $31,500 resistance, it might continue its upward movement towards $32,400.
However, if Bitcoin fails to secure 4-hour closes above the $31,500 resistance, it could be prone to continuing its downward trend. In this case, it may aim for a descent towards the blue support range mentioned in the analysis, which lies between $29,700 and $29,330. If Bitcoin receives robust buying reactions from this blue support zone, it could target a move back up towards the $30,800 level.
But should the BTC price close below $29,300, it may have a tendency to persist in its downward trend towards the $28,477 level. Therefore, investors who have taken long positions should manage their trades attentively.
