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Bitcoin Price Consolidates Gains But Rally Could Soon Resume

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Aayush Jindal

Key Highlights

  • Bitcoin price started a fresh rally after speculation of spot ETF approval.
  • BTC is now consolidating in a contracting triangle with resistance at $34,200 on the 4-hour chart.
  • Gold prices might soon climb further toward the $2,000 resistance.
  • Oil prices are moving lower below the $86.50 support.

Bitcoin Price Technical Analysis

Bitcoin price a strong rally above the $30,000 resistance. There were images in circulation about spot ETF listing on exchanges. It sparked a sharp surge of over 15%.

Looking at the 4-hour chart, the price rallied above the $32,000 and $33,200 resistance levels. The price even surged toward the $35,000 level before the bears appeared. A high was formed near $35,200 and the price is now consolidating gains.

It is trading in a contracting triangle with resistance at $34,200 on the 4-hour chart. If there is a fresh rally above the triangle resistance, Bitcoin could clear the $35,000 barrier.

The first major resistance is near $36,500. The next resistance is near $38,000. A successful close above the $38,000 level might spark a decent increase. In the stated case, the price may perhaps rise toward the $40,000 level.

If there is a downside break, the price might correct lower and test the $33,000 support. The next major support is near $32,400 or the 50% Fib retracement level of the upward move from the $29,655 swing low to the $35,200 high.

Any more losses might send the price toward the 76.4% Fib retracement level of the upward move from the $29,655 swing low to the $35,200 high at $31,000.

Looking at gold prices, it is now consolidating gains and might soon attempt a fresh move toward the $2,000 level.

Economic Releases

  • US New Home Sales for Sep 2023 (MoM) – Forecast -2.9% versus -8.7% previous.
  • BoC Interest Rate Decision – Forecast 5%, versus 5% previous.
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