Jesse Olson, a well-regarded crypto analyst, has spotlighted the second consecutive Heikin Ashi signal on the Bitcoin (BTC) weekly chart, despite Bitcoin’s recent ascendancy to $58,000. This indicator hints at a potential bullish reversal on the horizon. Olson emphasized that the absence of an upward wick suggests the downside trend might persist, signaling a continued strong downward momentum.
Olson’s accompanying chart indicates Bitcoin could face additional downward pressure, potentially plummeting to around $40,000. This bearish assessment arises even as Bitcoin recovered to $58,000 in the past 24 hours. While it’s uncertain if this uptick is a temporary relief bounce or a bullish reversal, Olson leans towards it being a relief bounce.
Conversely, crypto analyst Daan Crypto argues that Bitcoin must break above $60,000 to solidify a bullish reversal and pursue new market highs. Adding more complexity to the forecast, analyst Mikybull Crypto offers a more optimistic perspective. In a recent post on X, formerly known as Twitter, Mikybull Crypto stated that Bitcoin has completed a bullish diamond formation, suggesting the bottom is in if the bull market continues.
Further optimism comes from a newly formed bullish divergence on Bitcoin’s chart, reminiscent of one seen in September 2023. After the bullish divergence in September, Bitcoin experienced a substantial rally, achieving a new all-time high in March earlier this year. A similar scenario could unfold as Bitcoin attempts to reach new heights.
The crypto community remains hopeful that BTC could initiate its long-anticipated price rally post-September. According to analyst Rekt Capital, historical data suggests Bitcoin typically records significant gains in October. Notably, Bitcoin’s only October monthly losses happened in 2014 and 2018, during bear markets. Rekt Capital pointed out that Bitcoin is currently in a halving year, which historically has heralded a bull market. This implies a possible bullish surge for Bitcoin in October and potentially through the end of the year, particularly with the upcoming US presidential elections in November.
Presently, Bitcoin is trading at approximately $56,600, marking a rise of over 3% in the past 24 hours, according to CoinMarketCap data.
