Bitcoin (BTC), the largest cryptocurrency by market capitalization, started the third week of October with a 6% daily gain. BTC’s performance has fueled bullish sentiment among cryptocurrency investors and market observers, who suggest it could be ready to move to $70,000.

Bitcoin Recovers Key Support Levels

Bitcoin started the week regaining key resistance levels after a 6% gain from Sunday’s price. These results caused BTC to move from the $62,000 support area to retest the $66,000 support area on Monday morning.

According to the latest results, Bitcoin’s October gains have turned green so far at 3.17% monthly return. Coin data. Crypto analyst Rekt Capital highlighted Bitcoin’s recent moves, noting that BTC was able to reclaim its two-month downtrend as support.

According to the analyst, the flagship cryptocurrency has tested again a downward trend line extending back to the end of July, starting in October. BTC successfully retested and bounced off the trend line for two consecutive weeks, turning the range into support.

Additionally, the analyst noted that Bitcoin has performed several successful retests, including a “volatile retest” of the 21-week bull market exponential moving average (EMA).

“Note that the bottom of the green area coincides with the July retest of the downtrend, and the retest of the 21-week EMA coincides with the top of the green area,” the analyst added.

Likewise Ali Martinez highlighted that BTC is currently making another attempt to regain the 200-day moving average after four consecutive rejections in the last two months.

BTC Challenges August Highs

Rekt Capital noted that BTC has strengthened the $58,000-$61,000 range as a support area throughout the year: “It did so at a higher low compared to last month’s lows, as well as August’s lows.”

Moreover, the analyst stated that Bitcoin has challenged August highs around $64,200 following recent retests of key levels. He suggested that BTC’s recent moves are a “clear signal” that the August level is “weakening as resistance.”

Rekt Capital noted that BTC is retesting a multi-month descending channel top, which is also weakening as resistance. The flagship cryptocurrency successfully tested the channel lows as support this month.

The lows of the range are 7-month support coalescing with the previous all-time high (ATH). Nevertheless, an analyst excellent that BTC needs to have a weekly close above the top of the downtrend channel to break out of this pattern.

A weekly close above the August highs followed by a successful retest of that level “would create significant buy-side pressure to the top of the descending channel,” which could be accelerated if BTC’s daily close exceeds $64,200.

Moreover, a daily close above $65,000 and successfully reclaiming the range as a support zone could push BTC price towards the $70,000 resistance zone. The analyst noted that whenever Bitcoin closed the day above this level, the cryptocurrency moved in the range of $65,000-$71,350 in the following days.

At the time of writing, BTC is trading at $65,812, up 4% and 10.3% on the weekly and monthly time frames.

Featured image from Unsplash.com, chart from TradingView.com