Comprehensive Bitcoin Market Analysis: Looking Ahead to “Uptober”
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Bitcoin’s price trajectory experienced a remarkable start at the beginning of the third quarter. However, its performance in the subsequent months has not mirrored the bullish momentum observed in July. With less than a fortnight remaining, Bitcoin struggles to maintain any significant upward trend to reach new highs. Nonetheless, optimism is building as the market anticipates the “Uptober” season, with many speculating a potential rise in Bitcoin’s price in the weeks ahead. Recent on-chain data reveals a pivotal level to monitor if Bitcoin is to sustain its upward momentum.
Understanding the Critical $114,500 Support Level for Bitcoin
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On September 20th, cryptocurrency analyst Axel Adler Jr. shared valuable insights on the current Bitcoin price structure via the X platform. Adler Jr. suggests that Bitcoin’s bullish trend could resume if the price remains above the crucial $114,500 threshold.
This analysis focuses on the Volume-Weighted Average Price (VWAP) band, which indicates the average asset price (in this case, Bitcoin) weighted by trading volume. The VWAP band is defined by upper and lower boundaries that provide dynamic support and resistance levels for the asset’s price.
Adler Jr. points out that the 14-day VWAP band is currently cushioning Bitcoin from selling pressure, positioned around the $114,500 mark. This level serves as a vital support zone for Bitcoin.
The on-chain analyst emphasizes that as long as the price remains above this $114,500 region, Bitcoin may maintain its upward potential. “As long as the price stays above VWAP and avoids the lower half of the bands −1/−2, the base-case scenario is continued short absorption and consolidation with an upward bias,” Adler Jr. explains.
Additionally, Adler Jr. mentions the futures Pressure Index, which has decreased to 32.5, indicating bearish pressure at quarterly extremes. Despite this, the Bitcoin spot market continues to demonstrate resilience, as noted by the analyst. Investors are now keen to observe whether this resilience will translate into tangible upward movement in the coming weeks.
Current Bitcoin Price Overview
At the time of this analysis, Bitcoin’s price hovers just below $116,000, showing negligible fluctuations over the last 24 hours.
Bitcoin Price Chart
For an in-depth visual analysis, refer to the BTCUSDT chart on TradingView.
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