The cryptocurrency Bitcoin (BTC) has rebounded over the past 48 hours, pushing it back above the $27,000 resistance level. This recovery has driven Bitcoin’s price to $28,592, surpassing its August high of approximately $28,200.
Over the past seven days, Bitcoin’s price has seen fluctuations. It had been trading in a weak sideways movement between September 22 and 25, trading below the 50-day Simple Moving Average (SMA). However, the recent surge has seen it break above this resistance, currently trading about 5% higher on the weekly timeframe at $27,539.
Historically, October has been considered a bullish month for the cryptocurrency market, earning the nickname “Uptober” among analysts and investors over the past two years. Today, Bitcoin has also started the month on a positive note, rising 5% on the first day of October.
Despite today’s price dip, Bitcoin maintains its highest levels in over a month. The price corrected lower due to strong resistance at $28,000, where the 100-day and 200-day Simple Moving Averages are located.
To see an upward continuation, bullish traders will need to achieve a decisive daily candlestick close above the psychological level of $28,000. If this occurs, it signals the potential for an extended price rally with their eyes set on the critical $30,000 level.
It’s worth noting that the digital markets and Bitcoin are optimistic about October, historically seen as a positive month for cryptocurrencies.
Bitcoin has only experienced two declines in October over the past decade and consistently posted positive gains in the last three months of each year, starting with October. Ethereum has also recorded positive gains in October over the past four years and has already risen by 3.7% in 2023, coinciding with Bitcoin’s 5% gains for the month.