After Bitcoin’s sell-offs on September 24 and 26, another bearish candle closes the third red month. BTC is currently trading at $8,274, and still, there’s no sign of recovery after the fall on September 24. We could see further price drops if the bulls cannot reverse the damage seen at the end of last month.
Monthly Pattern: Prices Seem to Find Solid Support Base
October has had a poor start for traders who looked to capture Tuesday’s rebound to $8,511. Bitcoin prices quickly fell back to below $8,300 at about 02:00 UTC. This 3rd month of losses has paved the way for further price declines. There is a similar monthly pattern to what we say between February 2018 and October 2018. Prices seem to find a solid support base at about $7,780, with overall interest sliding. This can be seen by the limited BTC price range and lower highs of the monthly candles over the last quarter.
Will Volatility Increase Mid–Month?
There is a hope that sellers could tire by the end of the month since the total volume has seen a decline period-to-period. We will see if that theory comes to fruition in the next few days because historical data suggests that volatility tends to increase mid-month.
There is no counter-narrative to be seen in the weekly chart compared to the monthly chart’s bearish view. Momentum has reached its maximum under the RSI’s neutral 50 zone. This is a measurement of sellers and buyers over a specific period of a particular asset.
Bitcoin Prices Struggling to Break Above $9,000
Further, the AO (awesome oscillator), another measure of momentum and market cycles, shows Bitcoin’s slow but steady decline as prices struggle to return to above $9,000.
Looking at the limited price range alongside the weekly trajectory, the bears seem ready to push prices toward the 50-period moving average at $6,700. If prices were to rise above $9,400 and subsequently $9,800, this would help to reverse the recent developments in the market and build up confidence again for investors.