Futures analysis: Bulls find strong support

Bitcoin moved lower for much of September. However, bulls defended the $40 000 level, and at the start of October they seized the initiative: Bitcoin and Ethereum rose by almost 13%. At the time of publication they were trading at around $50 300 and $3 450 respectively.

Is a continuation of the uptrend possible in the current environment? We analyse the price levels of Bitcoin and Ethereum on the cryptocurrency exchange Bybit.

BTCUSD

4 October BTCUSD broke above resistance at $48 500 and is now attempting to hold above this level.

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If Bitcoin manages to hold above $48 500, a likely scenario is a rise toward the downward resistance that formed after the all-time high of $64 940 and the September plunge from $53 000.

After breaking above $50 000, Bitcoin could continue impulsive growth toward the next psychological level of $60 000. In the event of a failed test of $50 000, bears will attempt to take the initiative and push the price back to support in the $40 000 zone.

ETHUSD

ETHUSD also attempts to hold above the support level at $3 350. If it holds this level, one can expect growth toward the downward resistance.

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Conclusions

At the start of the month Bitcoin and Ethereum posted a strong upmove. For continued upside, the leading cryptocurrency needs to secure above $50 000. If this price level is not sustained, Bitcoin could stage another downside impulse with the potential to breach the $40 000 support.

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