Bitcoin Holds Support Above $60K, Pushes Back Toward All-Time High

Upside momentum is improving with seasonal strength in the fourth quarter.

Oct 29, 2021 at 5:41 p.m. UTC
Updated Oct 29, 2021 at 6:28 p.m. UTC

Bitcoin (BTC) is breaking above a short-term downtrend, which could support further upside toward the $65,000 resistance level. The all-time high around $66,900 is also within reach, although buyers struggled to sustain that level last week.

BTC has whipsawed over the past few days, which created choppy trading conditions. This is typical during a consolidation phase, especially after a near-50% price rally over the past month.

As of press time the largest cryptocurrency by market capitalization was changing hands around $62,500, up 2.4% over the past 24 hours.

The relative strength index (RSI) on the daily chart is rising from neutral levels, which means the pullback in BTC’s price is starting to stabilize. However, the weekly RSI is approaching overbought levels, which typically precedes a pullback in price.

Overall, upside momentum is improving with seasonal strength in the fourth quarter. A confirmed breakout (two consecutive daily closes) above the all-time high would yield a measured move projection toward $86,000. On the other hand, an immediate price pullback could be limited around the $53,000 support level.

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Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio manager at Cannon Advisors, which does not invest in digital assets. Damanick does not own cryptocurrencies.