Comprehensive Bitcoin Analysis: Breaking This Resistance Could Open the Way for a Price Surge!

Risky assets had a tough month. Rising oil prices and renewed inflation concerns drove cautious investors toward traditional safe havens. Gold maintained its historic status, while its younger rival Bitcoin fell from $87,000 to around $83,389

This month has been a difficult month for risky assets. Rising oil prices and the return of inflationary concerns sent cautious investors fleeing to traditional safe havens. In the meantime, gold maintained its historical position, but its younger rival, Bitcoin, faced a price drop from $87,000 to $83,389; A temporary drop that may be the beginning of a bigger jump.

Many market participants call Bitcoin "digital gold" due to its supply cap of 21 million units. Bitcoin outperformed gold in the third quarter, but gold has led the way in recent days. Despite this drop, analysts believe that the current chart hides very promising signs of a strong price recovery.

Next, relying on a report from TheStreet, we examine the bullish signs of the Bitcoin chart and important price levels that can determine the next direction of this digital currency.

Repeat history in Bitcoin chart; Is a new rally coming?

Ali Martinez, a well-known analyst of the digital currency market, published an analysis stating that the current structure of the Bitcoin chart is remarkably similar to its price behavior just before the previous bullish rally.

The main focus of this analyst is on the average price level of recent weeks in the range of $84,000. Traders closely monitor this average line; Because the return of Bitcoin price above the moving average usually signals the end of the correction and the beginning of a new uptrend. In the previous cycle, price stabilization above this level led to a powerful bounce, and now the technical structure reflects the same situation once again.

According to Martinez, if Bitcoin crosses this middle line again, the first upward stop will be the level of $89,000, and after that, the way will be paved to conquer the peak of $93,000 (about 12% growth compared to current rates).

Heavy buying by whales As retail and novice investors panicked and sold their holdings when they saw the price drop, the biggest market players took a completely different strategy.

Data provided by analytics platform Sentiment shows that major wallets bought and stored more than 16,010 bitcoins worth approximately $1.3 billion in a five-day period.

The apparent divergence between the behavior of retail buyers and whales is a classic example of the formation of a market floor. Panic selling by small investors coupled with massive buying by whales, while not a certainty for an immediate rally, suggests that the smart money is betting on a Bitcoin bounce.

What is the main obstacle facing buyers?

Despite the promising signs, Bitcoin needs to overcome a major resistance to continue its growth. This resistance is located in the range of $84,569 and can hinder the upward movement of the price.

According to the data of the Glassnode platform, nearly 800,000 bitcoins have been purchased around this price. Since the current price is below this level, buyers of these bitcoins are at a loss. Therefore, if the price reaches $84,569 again, many of them may sell their holdings to cover the loss and exit without loss. Such an event increases selling pressure and makes it more difficult to break through this resistance.

Ali Martinez believes that if Bitcoin can cross the range of $84,000 to $84,569 and stay above it, the possibility of price growth to $93,000 will increase. But until this resistance is broken, the bullish scenario cannot be confirmed and gold continues to outperform Bitcoin this month.

Will Buying Whales Take Bitcoin to $93,000?

Bitcoin's recent correction below $84,000 has some investors worried, but market data is showing signs of increased whale buying. Large investors have bought about $1.3 billion of Bitcoin in five days, and the price chart is very similar to the previous bullish pattern. According to Ali Martinez, if this pattern repeats, Bitcoin can first reach $89,000 and then $93,000.

However, the realization of this scenario depends on the price breaking through the important resistance of $84,569. If Bitcoin can break through this level and stay above it, the possibility of continued growth increases. But until this resistance is broken, the return of the upward trend has not yet been confirmed.