On October 22, the price of Bitcoin (BTC) entered what some traders predict will be a “consolidation phase” as investors take profits after a nonstop price spike that started Oct. 1 and sent BTC up 55% in just three weeks.
Data from Cointelegraph Markets Pro and TradingView show that A selloff at noon on Friday dragged the price of Bitcoin from the $ 63,300 support to the $ 60,000 level.
Here’s what market analysts are saying about what could be expected from Bitcoin’s current price action in the near term.
“Bitcoin could be poised for another leg to the up”
The current price action is seen as a positive development for the cryptocurrency market intelligence firm, Decentrader, who suggested that “Bitcoin is likely to move higher through Q4 2021” thanks in large part to the launch of the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy Fund (BTF).
In response to concerns that Bitcoin hit a cap, Decentrader pointed to the history of the new all-time highs and highlighted the fact that “there are zero instances of Bitcoin breaking significant previous all-time highs and not continuing to move higher.”
According to the analysis of the firm, Bitcoin’s current fractal pattern suggests “that the next major stop to the upside for Bitcoin would be $ 72,000 if momentum can be sustained, after which extensions of 1,618 suggest around $ 88,000 would prove to be a target of interest.”
The spike in derivatives financing observed in the last two days has been “restored to more balanced levels”, with open interest that remains in line with the uptrend, which, according to Decentrader, helps reduce the risk of a downward correction.
According to analysts, “A move to the upside over the weekend is likely to meet initial resistance at $ 65,000, which is the 61.8% retracement from $ 66,800 and the high of the range’s value zone.”
Decentrader said:
“The price is at a critical pivot point as of press time; any correction towards $ 50,000 we consider a buying opportunity and the price appreciation in the low financing rates, together with the increase in open interest, suggests that Bitcoin could be poised for another leg to the upside. “
BTC is on its way to trading like gold
One of the most popular comparisons financial analysts make is how the launch of a Bitcoin ETF compares to the launch of the first gold ETF.
According to Bloomberg Intelligence, “Large inflows for the new ProShares Bitcoin Strategy ETF show pent-up demand and quant traders looking for arbitrage opportunities, which will likely reduce spreads and pressure volatility.”
The Bloomberg Intelligence team said:
“We see BTC on its way to trading like gold.”
Short-term pullback between $ 56,000 and $ 59,000
Cointelegraph contributor, Michaël van de Poppe, has provided us with an insight into what may be coming in the short term for BTC, and posted the following chart outlining the lowest support zone to pay attention to in order to find a good break point. re-entry.
According to van de Poppe, the $ 64,000 zone was “a crucial level” that the price needed to break above, which it couldn’t do, and “that’s why a corrective move is taking place.”
van de Poppe said:
“Overall, looking at $ 56,000 and $ 59,000 as a good place to shop.”
The total cryptocurrency market capitalization currently stands at $ 2.518 trillion and Bitcoin’s dominance index is 45.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risks, you must do your own research when making a decision.
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