Traders brace for drop to $ 58,000 if Bitcoin price loses $ 62,000 support – Cointelegraph

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Whipsaw’s price action returned to the cryptocurrency market after the price of Bitcoin (BTC) lost momentum to $ 67,100 and retracted to the $ 62,000 level.

An 87% early morning flash crash of the BTC price at Binance US saw the price touch $ 8,200 briefly and this may have put the market on edge, but in general it appears to have been an isolated event. Data from Cointelegraph Markets Pro and TradingView shows that bears have briefly taken control of the market, with the price now fluctuating between $ 62,000 and $ 63,500.

4 hour BTC / USDT chart. Source: TradingView

Here’s a look at what traders and analysts are saying about recent Bitcoin price developments and what could be the next step for the top-ranked digital asset.

$ 66,000 must become support

Bitcoin’s rapid rise over the past three weeks has brought the price back to the major resistance level it faced in April, a fact highlighted by independent crypto analyst “Rekt Capital”. As noted below, there was a firm rejection near the resistance level of $ 63,500.

The main difference this time around is that the bulls are now trying to establish this level as a new area of ​​support, which will give BTC a good basis for a further push higher.

In the near term, this is now a key price point to watch as the market moves towards the last week of October.

The fourth quarter has been historically bullish

The breakthrough to a new historic high has many people across the space wondering if now is the right time to take profit or if it is time to increase position sizes instead.

According to David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, “In the world of crypto anything is possible,” and he suggested that “a continuing uptrend taking BTC to $ 80,000 shortly, or a slight decline to $ 58,000 or even up to $ 53,000 before rising back to $ 80,000 and above ”were both quite possible.

Historically speaking, “the odds would favor some pullback after the recent scorching run,” according to Lifchitz, who highlighted the $ 64,500 and $ 58,000 levels as some of the key areas to watch for the potential “to lighten positions in the market. case back off and reload again to the $ 53,000 region if the pullback deepens, or reload where the first stops hit if the pullback does not deepen.

Overall, Lifchitz indicated that the way forward looks positive for Bitcoin and the broader cryptocurrency market as it enters the final quarter of 2021.

Lifchitz said:

“The 4th quarter has historically been bullish, so it favors a bullish target by the end of the year. So broadly bullish in the medium term, but maybe some slight turbulence ahead. “

Related: Bitcoin Bulls Expected To Make $ 830 Million Profit After BTC Options Expiration On Friday

Bitcoin must contain $ 62,000

A final perspective was offered by the pseudonymous Twitter user “E-Club Trading”, who job the following chart showing recent price action and important support and resistance areas.

1 day BTC / USD chart. Source: Twitter

The analyst said:

“A little bit of profit in BTC as it drops below the previous high of $ 65,000. It needs to hold above $ 62,000, or we could retest $ 58,000 in the next few sessions. I’m glad to be out of the way for the moment.

The overall cryptocurrency market capitalization now stands at $ 2.548 trillion and Bitcoin’s dominance rate is 46.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.