Bitcoin's decline halted again by $107,000–$110,000 range

Last week, Bitcoin (BTC) traded in the $107,000–$110,000 range. This zone had previously stalled the May-to-July upward surge and reversed the downtrend at the close of August. Clearly, this area is once again playing a key role as support and resistance, with prices bouncing back up from it. The current bullish momentum has surpassed 4.5%, suggesting that traders may pause. Buyers, however, maintain a target at September highs near $117,500.

This upward reversal is confirmed by the Stochastic Oscillator, whose lines were seen to cross as it moved out of oversold territory. Similarly, the MACD indicator stopped declining and is now returning toward zero from the negative zone. If bears try to regain control, they will encounter resistance not only from the $107,000–$110,000 range but also from the nearby 200-day moving average.

Seasonality is a factor that supports the top-performing cryptocurrency. October is historically known as "Uptober", with the second half of autumn typically being Bitcoin's strongest period. The average return for BTCUSD in this period is 22%, and it is even higher in November, at 46%. Traders expect this type of rally to happen again, that's why they're accumulating long positions—a strategy made more enticing by last week's price correction.

Major market players, known as "whales", are also buying Bitcoin on the dip. While retail investors withdrew over $900 million from BTC ETFs during the recent fall, entities like MicroStrategy and Capital Management are poised to fill the void. This accumulation may be linked to the upcoming Core v30 update, scheduled for October. The rollout will enable large volumes of non-payment data to be transmitted across the Bitcoin Core network.

The following trading plan may come into play:

Buy BTCUSD at the current price. Take profit: $117,500. Stop loss: $110,000.