Bitcoin price outlook: Analyst identifies key level for bulls as BTC breaks above $20K

Bitcoin and cryptocurrencies have added more than 7% in market capitalization over the past 24 hours, with more than $72 billion added to the global crypto market cap

Bitcoin (BTC/USD) jumped more than 7% to break above $20,000 and hit highs of $20,700. Meanwhile, Ethereum (ETH/USD) rose nearly 14% to breach the $1,500 demand zone for the first time since mid-September.

The rest of the crypto market also registered decent gains, with Cardano, Solana and Dogecoin seeing double-digit upsides among the top ten cryptocurrencies by market cap. Altogether, the green across the crypto early Wednesday helped push total market capitalization to $1.04 trillion.

BTC remains in consolidation, analyst says $23,450 is key

Scott Melker ‘The Wolf Of All Streets’ says Bitcoin on the monthly chart shows an attempt at a reversal at a support level from 2013. This level holding as support and Bitcoin bouncing off it would be “poetic” the popular crypto analyst and investor tweeted.

$BTC Monthly

Literally impossible for Bitcoin to attempt a reversal at a more ideal spot.

I have shared this chart for YEARS. Price is currently bouncing off of monthly support from 2013… almost to the dollar.

May not be the bottom, but would be poetic if it is. pic.twitter.com/LeDWh7YD4v

— The Wolf Of All Streets (@scottmelker) October 26, 2022

Another crypto analyst, Rekt Capital, says BTC remains in consolidation between the 200MA and 300MA on the weekly chart. But though historical bottom zones for the flagship cryptocurrency, bulls could do well to watch a key price level.

In a tweet early Wednesday, the analyst said BTC needs to break above $23,400 to register a stronger acceleration. He noted:

“Though it may be easy to get excited about this recent uptick in BTC’s price action…Macro-wise, $BTC is still in its historical bottoming area & hasn’t registered a major breakout yet. BTC would first need to break ~$23450 to see stronger trend acceleration”

Rekt also points out:

On the normal scale, #BTC is breaking its year-long downtrend

On the log scale however, the year-long downtrend is still far away from being tested$BTC #Crypto #Bitcoin pic.twitter.com/LTCgkRDPM3

— Rekt Capital (@rektcapital) October 26, 2022

The gains in crypto over the past day come despite broader market jitters around central bank rate hikes and an economic slowdown that has impacted major Wall Street firms.

Meanwhile, optimism around crypto in the UK rose as the country welcomed a new prime minister seen as being more crypto-friendly. UK lawmakers have also voted in favour of a bill recognising crypto as regulated financial instruments.

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