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The upcoming pennant breakout brings Bitcoin price back to $14,000



As the weekend approaches, it seems that the price of Bitcoin (BTC) will end this month with a very strong performance, with many bull markets calling for a new all-time high above $20,000 in the near future.

Traders attribute these high estimates to the fact that BTC seems to have flipped between $12,000 and $12,500 to support and prohibit some unexpected price crashes, and Bitcoin is drawing beautiful monthly candles.

Weekly price chart of the crypto market. Resources: Coins 360

Further “calling”

; evidence comes from the expiration of options and futures today. As of October 28, there are $450 million in open futures contracts that expire.

According to Cointelegraph contributor Marcel Pechman:

“It’s not surprising that the recent options on BTC and Ethereum have expired. Deribit returned to 137,000 BTC options, compared with 150,000 at the opening yesterday. At the same time, CME’s $215 million futures open position was on October 30 Expiration, but this seems to have a small impact on the price, even if it does. Moreover, when CME futures expire, the phenomenon of price decline before and after BTC no longer exists. Despite the negative news from Asian exchanges and Tether , Which once again proves the recent bull market.”

Currently, the trading price of BTC exceeds $13,500. The 4-hour chart shows that as the price enters a narrower range, the digital asset presents higher lows and lower highs.

BTC/USDT 4-hour chart. Source: TradingView

Even if the price stays above the 20-day moving average, it is no surprise that the price will be between $13,500 and $12,900 throughout the weekend to the beginning of next week.

If the Bitcoin price can break through the pennant trend line at $13,620 and ensure a 4-hour close above it, it may again push a new 2020 high above $13,859.

Currently, with the increase in trading volume, the moving average convergence divergence indicator shows that the MACD has crossed the signal line (orange), and the histogram shows that the momentum has increased. The RSI is also above the midline, reaching only 60, but in the past few days, BTC has encountered resistance at $13,660.

If BTC loses its current momentum and falls from the pennant to below $13,100, support is at $12,800. Failure to maintain this level will open the door for retesting the next support level of $12,000 and below this level of $11,500.

Bitcoin daily price chart. Resources: Coins 360

From a bird’s-eye perspective, the current price trend of Bitcoin is encouraging, and digital assets are clearly in a strong upward trend, and there is still room for growth.

The same cannot be said for altcoins that have experienced an absolute setback this week. At the time of writing, the price of Ether (ETH) fell by 5.8% due to the difficulty of the top altcoins to recover $400 as support. Chainlink (LINK) fell 6.74%, and Binance Coin (BNB fell 6.10%.

According to data from CoinMarketCap, the entire cryptocurrency market value is currently $396.6 billion, and Bitcoin’s dominance rate is 63.5%.