After a remarkable start to ‘Uptober,’ Bitcoin (BTC) has recently seen significant volatility, retesting multiple crucial levels. As the price bounces from the $110,000 mark, some analysts have suggested that BTC’s rally won’t restart until a key area is reclaimed.
Over the past week, Bitcoin’s price has fluctuated between its range’s lower and upper boundaries, hitting both a new all-time high (ATH) of $126,000 and a three-month low of $102,000.
The trader suggested that Bitcoin will likely continue to “chop” within the range’s mid-zone, where most price action has occurred since Q3, until it reclaims and retests $117,000 as support.
He noted that on the previous occasions when the price Daily Closed above this level, Bitcoin was able to rally to at least $117,300, even if the bounce eventually led to more downside action.
Nonetheless, “for bullish bias, it’s important $117.3k doesn’t turn into a resistance on this current move and so Bitcoin will need to Daily Close above $117.3k to continue towards $120k over time,” the analyst warned.
He also noted that Bitcoin has been consolidating within the $108,000-$116,000 levels in the monthly timeframe, upside wicking beyond the range high and downside wicking below the range low since July.
The analyst suggested that the downside wicks could be a positive sign since “it signifies a liquidity grab at lower price levels that could add the necessary fuel to attempt a Macro Range breakout.”
“As a matter of fact, Bitcoin has been upside wicking beyond the $116k Range High far more frequently in recent months compared to the downside wicking below the $108k Range Low, which is a testament to the Range Low’s role as a stable higher timeframe support,” he explained.
As of this writing, Bitcoin is trading at $112,610, a 2.7% decline in the daily timeframe.
