Bitcoin (BTC) broke above a crucial level ($20,000) yesterday. Following this, the king of cryptos started today’s session in the green. It seems that the bulls have finally decided to act. In fact, a large volume accompanied this upward movement of 5%. A buying opportunity presented itself on October 21, priced at $18,700. Is it still time to buy bitcoin? Let’s try to answer that in this analysis.
Bitcoin (BTC): the ideal time to buy?
Bitcoin price has broken through a crucial level that could signal the start of a bull run. This is a level close to the high of December 2017, around $20,000. Indeed, after a drop of more than 70% since November 2021, BTC has returned to this level. After several months of hesitation, the price seems ready for the next bullish phase.
The upside that allowed the breakout of this level started at $18,700. This is the bottom of the October 21st session. It is also the optimal entry point to buy bitcoins before this momentum bullish. So, for a long position from this low, the target can be placed at $20,787.
Indeed, the price could turn around on this level. Moreover, it is a support turned resistance which is quite crucial. However, if the bulls continue to push, it may drive the price towards the “ imbalance ” just above. This is what will be the target (TP 2 at $21,418.37) if you bought bitcoin at $18,700. Additionally, this goal aligns with two Fibonacci levels.
The first is the 50% of the long Marubozu candle. The wave is measured from the open of the candle to the high of the next candle. The second is the projection of the wave from the open to the low in October. This level ($21,418.37) is then a major obstacle that could cause the price to reverse downwards.
Multiple hurdles?
Currently, buying bitcoin seems to be reckless. We must wait for a correction towards $20,000 before considering another long term position. Indeed, even though buyers seem to be gaining strength, there are several hurdles to overcome.
The closest resistance is found between $20,750 and $20,850. Should the price break above this level, the bulls could drive bitcoin above $22,400. To consider a long-term bull run, the bulls will need to break above the $25,000 area. Thus, this is a crucial level that lines up with the 200-day moving average.
Once crossed, it will be the perfect time to buy bitcoins for a long-term investment. We will have to be very attentive to the next movements of bitcoin. Indeed, the close of this month of October could be very decisive for the crypto industry in general.
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