Bitcoin (BTC/USD) has made a triumphant return, breaking through the $65,000 mark, igniting a debate among technical analysts about the potential for a temporary dip before the bullish trend resumes.
Pseudonymous analyst Emperor, known for their insightful market commentary, has observed that Bitcoin has crossed the $65,000 threshold, but anticipates a potential pause in price action due to the presence of the all-time high volume-weighted average price (VWAP). This crucial technical indicator, represented by a red line on trading charts, provides insights into the average price of an asset throughout a trading day, taking into account trading volume. It helps determine the fair value of an asset and identify potential entry and exit points for traders.
Emperor predicts that Bitcoin’s next target is the August high, which they believe will be reached swiftly. However, they also acknowledge the possibility of a pullback, suggesting it could occur from the August high, and any dips are likely to be shallow.
Their analysis identifies a potential pullback zone for significant dips, likely in October, near the $60,000 mark. This zone aligns with daily trends and Fibonacci levels, providing a technical framework for predicting market movements.
Despite the bullish outlook, Emperor advises followers to enjoy the pump but avoid gloating over bearish sentiment. They believe that short-selling and resistance to accepting the upcoming uptrend fuel the momentum towards new all-time highs.
Echoing Emperor’s sentiment, another trader agreed that the current stall in price action doesn’t necessarily signal bearishness, especially given the structure break in the market. They expressed a cautious approach initially, but the recent price trends remind them of October 2023 levels, highlighting a potential for strong continuation of the uptrend.
The influence of Bitcoin as an institutional asset class is expected to be extensively discussed at Benzinga’s upcoming Future of Digital Assets event on November 19th. This event promises to provide valuable insights into the evolving landscape of digital assets and their impact on traditional finance.
As Bitcoin continues its upward trajectory, the crypto community eagerly awaits further developments and the potential for new highs in the coming months.
