Bitcoin Needs to Achieve a ‘Higher High’ to Validate Uptrend Following Drop Below $58K

To sustain its longer-term upward trajectory, Bitcoin must not fall below the $56,000 threshold, as highlighted by a crypto market analyst.

Key Insights on Bitcoin’s Price Movement

Recent analysis indicates that for Bitcoin to maintain its current uptrend, it is essential to form a bullish “higher high” on the price chart after the recent drop below $58,000. Analyst Matthew Hyland articulated in a recent video that it is crucial to witness a rebound and create a higher high to reinforce the uptrend that has prevailed since August.

Maintaining Key Price Levels

Hyland stressed that Bitcoin should stay above the critical level of $57,700. Should the price drop below this, it is vital for it to hold the $56,000 level to avoid establishing a lower low.

In contrast, some traders, including Markus Thielen from 10x Research, have expressed the viewpoint that Bitcoin may need to decline further before a new uptrend can commence. Thielen recently advised market players to consider entry points if the price were to fall into the lower $40,000s.

Currently, Bitcoin is trading at $59,218, recovering from a dip to $57,925 within the previous 24 hours, as per data from CoinMarketCap.

Hyland reiterated that since the beginning of August, Bitcoin has consistently demonstrated higher lows and higher highs, despite experiencing significant pullbacks at the start of both July and August. He anticipates that Bitcoin’s price will see some fluctuations leading up to the United States presidential election on November 4.

September is historically noted as a weaker month for Bitcoin’s performance, and indications suggest that the price may exhibit mostly sideways movement during this period.

Despite the typical September trends, recent observations indicate that Bitcoin’s price action might not align with the dull patterns of prior years. Factors contributing to this perspective include stabilized selling pressure from Bitcoin miners and an increasing stablecoin supply ratio, which shows bullish indicators.

Additionally, a cryptocurrency trader known as Jelle has shared insights with their substantial following, positing that a broader, multi-year analysis of Bitcoin’s price chart implies a potential path toward reaching the six-figure milestone soon, a target many investors have been speculating about.

“This multi-year cup & handle formation indicates a six-figure target,” Jelle mentioned in a recent post. “Although some may have lost faith, I believe we will be much closer to that target by year-end,” they added.