Price action has returned to the cryptocurrency market after the price of Bitcoin (BTC) lost steam at $ 67,100 and retracted to the $ 62,000 level.
A Sudden 87% Early Morning Drop in BTC Price on Binance US it made the price briefly touch $ 10,000 and may have pushed the market to the limit, but overall it appears to be an isolated event. Data from Cointelegraph Markets Pro and TradingView showing that bears have briefly taken control of the market with a price now fluctuating between $ 62,000 and $ 63,500.
Here’s a look at what traders and analysts are saying about Bitcoin’s recent price action and what could be next for the top-ranked digital asset.
$ 66,000 level must become support
Bitcoin’s rapid rise in the last three weeks brought the price back to the main resistance level it faced in April, a fact that highlighted independent cryptocurrency analyst ‘Rekt Capital’. As shown below, there was a firm rejection near the $ 63,500 resistance level.
In mid-April 2021, #BTC rejected from the orange resistance area
Today, USDBTC is trying to retest this same area but this time as support#Crypto #Bitcoin pic.twitter.com/0V2Geql47T
– Rekt Capital (@rektcapital) October 21, 2021
In mid-April 2021, BTC was rejected from the orange resistance zone.
Today, the USD / BTC pair tries to retest this same zone but this time as support.
The main difference this time is that now the bulls are trying to establish this level as the new support zone, which will give BTC a good foundation for further momentum.
In the short term, this has become a key price level to watch out for as the market enters the last week of October.
The fourth quarter has been historically bullish
The break to a new all-time high has many across the space debating whether now is a good time to take profits or whether it is time to increase position size instead.
According David Lifchitz, Managing Partner and Chief Investment Officer of ExoAlpha, “in crypto-land, everything is possible”, and suggested that “a continued uptrend that takes BTC to $ 80,000 in a short time from here, or a slight pullback to $ 58,000 or even down to $ 53,000 before climbing towards $ 80,000 and above” both were within the realm of possibility.
Historically speaking, “the odds would favor some pullback after the recent torrid ride,” according to Lifchitz, who highlighted the $ 64,500 and $ 58,000 levels as some of the key areas to watch out for for the potential to “lighten positions in the event of a pullback and reload in the $ 53,000 region if the pullback deepens , or reload where the first few stops were hit if the recoil doesn’t get worse. “
Overall, Lifchitz indicated that The way forward looks positive for Bitcoin and the crypto market in general as it enters the final quarter of 2021.
Lifchitz said:
“The fourth quarter has been historically bullish, so it favors a bullish target for the end of the year. Very optimistic for the medium term overall, but maybe some mild turmoil in the future. “
Bitcoin needs to hold $ 62,000
The pseudonymous Twitter user, “E-Club Trading” offered a final perspective, and public The chart below shows recent price action and major support and resistance zones.
The analyst said:
“A bit of profit-taking on BTC as it drops below the previous high of $ 65,000. It should stay above $ 62,000, or we could retest $ 58,000 in the next few sessions. Glad to be out of the way for now. “
The global cryptocurrency market capitalization currently stands at $ 2.548 trillion and Bitcoin’s dominance index is 46.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Each investment and trade movement involves a risk, you must carry out your own research when making a decision.
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