Leading cryptocurrency Bitcoin (BTC) experienced sharp declines in October, known as the historically bullish month.
At this point, Bitcoin has continued its decline despite its traditional upward trend in October and is still searching for direction.
Analyst James Van Straten said Bitcoin continues to struggle in October, one of the strongest months in history.
The analyst noted that Bitcoin is moving sideways between its 200-day and 365-day simple moving averages (SMA), adding that the $103,000 support level is critical.
Stating that the 200-day SMA has mostly served as support for Bitcoin since the 2023 cycle began, the analyst stated that when this level cannot be held, the 365-day SMA acts as secondary support.
Stating that the 365-day SMA is located at $100,367, the analyst said that Bitcoin is stuck between the 200 and 365-day SMAs.
“While investors generally expect a price increase in October, market sentiment has so far failed to meet those hopes.
BTC consolidated between the 200-day SMA of $107,846 and the 365-day SMA of $100,367.
This is the fourth time this cycle that Bitcoin price has been stuck between these two averages, and this sideways trend could last for months.
The analyst also noted that key levels to watch for Bitcoin include $103,509 (2025 investor cost basis), $100,000 (psychological basis), and $112,100 (short-term cost basis).
The analyst finally noted that the 200-day SMA is often used as a dividing line between bull and bear markets, saying, “Bitcoin breaking above the 200-day line is the key to a short-term recovery and a signal of a trend change. However, if it fails to break above this level, a prolonged sideways movement is likely.”
*This is not investment advice.
Continue Reading: October Ends Empty, Bitcoin (BTC) Still Can’t Find Its Direction! Analyst: “These Levels Are Very Critical, Must Be Monitored Closely!”
