After a long time, Bitcoin faced a bullish weekend, regardless of limited buying pressure. Although it indicates the growing strength among the bulls, bears may not be misinterpreted as inactive. The star crypto is following a pre-determined trend, which suggests a trend reversal is fast approaching. However, a bearish narrative has always emerged, but the possibilities of a bullish breakout fly high.
The BTC price has been consistent since the beginning of the month, despite minor setbacks that it faced in between. Historically, October has been seen as a bullish month for Bitcoin and the entire crypto space. Hence, a similar outcome is expected in the coming days, with the possibility of a bearish pullback. A popular analyst, Altcoin Sherpa, believes the BTC price is displaying an equal probability of reaching $40,000 and plunging back to $20,000.
The analyst observes the trend pattern of the star crypto since the beginning of the year where it has made a lower high close to or on the 200-day EMA. The price has rebounded each time, and hence a fair chance of a bullish upswing may emerge. It’s worth noting that the BTC price has yet to be marked, which substantiates the bullish claim. Unfortunately, the price is undergoing extreme compression at the moment, which can be considered a higher low.
Therefore, the analyst believes that the next higher high could be extremely pivotal, as it could decide whether the Bitcoin price may rise either above $40,000 or drop back to $20,000. However, the market structure continues to remain bullish which may keep the optimism higher within the markets.
“Next high will tell us if we’re going to 40K or 20K IMO. We’re potentially making some sort of higher amount of compression w.these 1D EMAs. Market structure still technically bullish still….”