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Bitcoin Monthly Chart About to Complete First Bullish Engulfing Pattern in 18 Months

Bitcoin Monthly Chart About to Complete First Bullish Engulfing Pattern in 18 Months

Bitget2024/09/29 17:25

The monthly chart of Bitcoin (BTC) is set to complete its first bullish engulfing pattern in 18 months in 48 hours, last seen in January 2023, marking the bottom of the 2022 bear market, Cointelegraph reports.

Despite the bullish long-term trend for Bitcoin, recent indications point to the possibility of downside volatility in the short-term.BTC bottomed on September 6 before rising parabolically, breaking out of its previous pattern of lower highs.

At the same time, Bitcoin's open interest (OI) increased rapidly, reaching $35 billion on September 27, matching the February and July 2024 highs. While open interest suggests that the futures market is still dominating price action, flat funding rates indicate that perpetual traders are still “hesitant”.

Independent trader Adam noted that the spot order book is deeply skewed in favor of the sellers, with spot traders currently selling aggressively at the $66K resistance level. As a result, the likelihood of downside volatility in BTC over the coming week is high.

From a technical perspective, the 'Uptober' could begin with a short-term retracement into a higher low pattern. The 4-hour chart of BTC shows a bearish divergence between its price and the Relative Strength Index (RSI).

From the current price, an immediate pullback to $62,300 or 4.66% lower is possible. If the pullback persists, the next test range is the order block between $59,500 and $61,000.

The EMA-50, 100 and 200 levels also support a fall to $61,000 which means this is the lowest range of retracement expected in the coming week. A daily close below $60,000 could jeopardize the current bullish momentum

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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