Cryptocurrency Analyst Jesse Olson highlighted the second consecutive Heikin Ashi signal on the weekly Bitcoin (BTC) chart. This is despite Bitcoin’s recent surge to up to $58,000which suggests that a reversal of the upward trend may be on the horizon.

What the Heikin Ashi Signal Means for Bitcoin

One sec backlighting second in a row Hello to you too, Ash on the weekly Bitcoin chart, Olson also noted that there was no wick up, suggesting that the downtrend is likely to continue. The crypto analyst also previously explained how the lack of a wick up signals strength in downward momentum.

Based on Olson’s accompanying chart, Bitcoin could suffer further downward pressure and fall to from just $40,000This bearish analysis comes amid a rebound in Bitcoin, which has surged to $58,000 in the past 24 hours. While it is not yet known whether this is a relief rebound or a bullish reversal, Olson’s analysis suggests a relief rebound is more likely.

However, cryptocurrency analyst Daan Crypto has suggested that Bitcoin needs to successfully break above $60,000 to achieve a bullish turn and reach novel highs this market cycleMeanwhile, contrary to Olson’s bleak analysis, Mikybull Crypto cryptanalyst provided a more positive outlook for Bitcoin.

WX (formerly Twitter) fastingcrypto analyst stated that Bitcoin has completed a bullish diamond formation. In line with this, Mikybull Crypto noted that he believes Bitcoin has bottomed out if the bull market continues.

In another Posts XMikybull Crypto highlighted the bullish divergence that recently formed on the Bitcoin chart, similar to the one in September 2023. After the bullish divergence in September 2023, BTC experienced a significant rally that eventually paved the way for reaching novel all-time record (ATH) in March of this year. Therefore, something similar could happen again as Bitcoin tries to reach novel highs.

BTC price growth may start after September

Considering Bitcoin’s historical downtrend in September, the cryptocurrency community is positive that BTC could begin its long-awaited price rally as soon as the month is over. In a recent analysis, cryptanalyst Rekt Capital explained why the flagship cryptocurrency will likely see huge gains in October.

The cryptocurrency analyst noted that Bitcoin’s only monthly losses in October came in 2014 and 2018, when it posted monthly losses of -12.95% and -3.83%, respectively. He added that those were bear markets. However, Bitcoin is in halving yearhistorically introducing bull market. As such, BTC could enjoy growth in October and even until the end of the year, especially with the US presidential election approaching in November.

At the time of writing, Bitcoin was trading at around $56,600, up more than 3% in the past 24 hours, according to CoinMarketCap data.

Featured image created with Dall.E, chart from Tradingview.com