Bitcoin must hit ‘higher highs’ to confirm uptrend

Bitcoin must avoid a drop below $56,000 if it is to maintain its long-term uptrend, one cryptocurrency analyst said.

Bitcoin’s next move needs to print a bullish “higher high” on the price chart to keep its uptrend intact after the recent drop below $58,000, one cryptocurrency analyst said.

“We really need to start to break out of this and make higher highs to further confirm that we are in the uptrend that we have been in since August,” cryptocurrency analyst Matthew Hyland explained in an analysis video on August 30.

Bitcoin must not fall below $56,000 to sustain the uptrend

“Bitcoin needs to stay above the $57,700 level, but if it’s going to go down, it does need to hold the $56,000 level eventually and if we were to lose this $56,000 level, it would be a lower low,” Hyland added.

However, some traders believe that Bitcoin

Bitcoin

$58,965

needs to move significantly lower before resuming its uptrend.

On August 7, Markus Thielen, head of research at 10x Research, advised market participants to wait for Bitcoin prices to “drop to the low $40,000s” in order to pick the best time to enter the bull run.

According to CoinMarketCap, at press time, Bitcoin is trading at $59,218, having rebounded from its decline to $57,925 within 24 hours.

Hyland reiterated that Bitcoin has been “making higher lows and higher highs, higher lows, higher highs” since early August, noting that both early July and early August saw “significant pullbacks.”

Overall, Hyland believes that Bitcoin will continue to “see some volatility” ahead of the U.S. presidential election on November 5.

He also believes that September was “mostly sideways, and it was the worst month in Bitcoin’s history.”

However, Bitcoin price action in September may not mirror the “boring” trends of previous years, as selling pressure from Bitcoin miners has stabilized and stablecoin supply ratios are also showing bullish signs.

Meanwhile, anonymous cryptocurrency trader Jelle and their 91,000 X Fans shared that a multi-year zoomed-out view of the Bitcoin price chart suggests that Bitcoin could still reach the six-figure mark in the near term, which is what many traders have been speculating as a target.

“This multi-year cup and handle pattern has a target of 6 figures,” Jelle wrote in an Aug. 30 post.

“Many have given up at this point, but I’m pretty sure we’ll be much closer to that target by the end of the year,” Jelle added.