Crypto analyst Jesse Olson has pointed out the second consecutive Heikin Ashi signal observed on the Bitcoin (BTC) weekly chart. This comes in light of Bitcoin’s recent surge to as high as $58,000, indicating that a bullish reversal may be forthcoming.
Implications of the Heikin Ashi Signal for Bitcoin
While pointing out the second consecutive Heikin Ashi on Bitcoin’s weekly chart, Olson also mentioned that there was no upper wick present, indicating that the downward trend is likely to persist. The crypto analyst previously explained that the lack of an upper wick signals strength in downward momentum.
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According to Olson’s accompanying chart, Bitcoin may face additional downward pressure, potentially falling to as low as $40,000. This bearish outlook arises during Bitcoin’s recovery as its value surged to $58,000 in the past 24 hours. While the nature of this surge remains uncertain—whether it’s a relief bounce or a genuine bullish reversal—Olson’s analysis leans towards it being a relief bounce.
Conversely, crypto analyst Daan Crypto has suggested that Bitcoin must successfully surpass $60,000 to achieve a bullish reversal and strive for new highs in this market cycle. Meanwhile, against Olson’s bearish take, crypto analyst Mikybull Crypto has offered a more optimistic outlook for Bitcoin.
In a recent post on X (formerly Twitter), Mikybull Crypto stated that Bitcoin has completed a bullish diamond formation. In this regard, Mikybull Crypto believes that the bottom is in for Bitcoin if the bull market is still active.
In a different post, Mikybull Crypto pointed out a recent bullish divergence on Bitcoin’s chart, echoing a similar pattern seen in September 2023. Following that bullish divergence in September 2023, BTC underwent a notable rally that eventually led to a new all-time high (ATH) in March of this year. Therefore, a comparable event may occur once more as Bitcoin aims for new heights.
Potential for BTC’s Price Rally After September
In light of Bitcoin’s historical bearish trend during September, the crypto community holds optimism that BTC may initiate its long-anticipated price rally once this month concludes. A recent analysis by crypto analyst Rekt Capital indicated the likelihood of significant gains for the leading cryptocurrency in October.
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The analyst pointed out that Bitcoin’s only monthly losses in October occurred in 2014 and 2018, with monthly declines of -12.95% and -3.83%, respectively. He noted that these instances were during bear markets. However, with Bitcoin currently in a halving year, which historically signals the onset of a bull market, Bitcoin may experience a bullish trend through October and potentially into the year’s end, particularly with the upcoming US presidential elections in November.
At the time of writing, Bitcoin is trading around $56,600, reflecting a more than 3% increase in the last 24 hours, as per data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
