4th time’s the charm? Bitcoin tags $68K in attempt to break 217-day downtrend
2024.10.16 13:07
Bitcoin (BTC) price registered another monthly high at $68,400 on Oct. 16, forming a new higher-high pattern( HH3) in the markets. BTC swiftly registered a new weekly high after a sharp hourly correction of 3.41% on Oct. 15. Alongside price, BTC’s on-chain data is also demonstrating a positive improvement, with active addresses indicating a positive shift in market demand and user activity.
Bitcoin 1-day chart. Source: Trading View
As prices oscillate near the $70,000 level, analysts are addressing a key price range that may lead to a short-term correction or disrupt a six-month downtrend.
Bitcoin price is in the window, says analyst
After Bitcoin reached an all-time high of $73,881 in March 2024, BTC has exhibited a 217-day downtrend, forming a series of higher lows and lower lows between a descending broadening wedge pattern.
The weekly chart currently illustrates BTC’s fourth attempt at breaking above the 217-day upper trendline, which can have immediate implications on its price trajectory.
Bitcoin weekly chart. Source: Trading View
Previously, Cointelegraph reported that the range between $68,300 and $67,300 would be a critical junction for BTC, which needs to flip into support to disrupt the aforementioned downtrend.
Similarly, veteran trader Peter Brandt, highlighted the same range and suggested that Bitcoin price is currently ‘in the window’. The trader adds,
“Will Bitcoin escape through the window or have the window slammed on its head?”
Bitcoin price analysis by Peter Brandt. Source: X.com
Meanwhile, BitQuant, an independent trader, believes that after breaching $70,000, Bitcoin is likely going to exhibit a prolonged consolidation between $95,000-$75,000.
Related: Bitcoin open interest soars to 1-year high as BTC price rallies toward $68K
Bitcoin active addresses exhibit a “positive shift”
While Bitcoin’s price may face market volatility in the short term, improving on-chain metrics indicate that a bullish leg over the long term continues to develop.
Data from Cryptoquant indicates that Bitcoin has experienced a significant surge in active addresses since the beginning of September.
As illustrated below, the Bitcoin active address momentum indicator has reversed a downtrend and has been rising for the past 45 days.
Bitcoin Active Address Momentum chart. Source: Cryptoquant
The active address indicator moving above both the 30-day and 365-day moving averages signals a positive shift in improving user engagement and demand. The Cryptoquant analysis states,
“Historically, active user participation has been a critical parameter in every bullish cycle, suggesting that demand is returning to the network.”
With Bitcoin’s dominance reaching a three-and-half-year high, the bullish sentiment around the largest crypto asset continues to build after a rocky start to October.
Related: Bitcoin profit-taking nears $74K peak as speculators send Binance $500M
