Whipsaw price action returned to the cryptocurrency market after Bitcoin (BTC) dropped to $67,100 and fell to $62,000.
Early in the morning, the sudden crash of 87% of the BTC price on US Binance caused the price to briefly reach the $8,200 level, which may have stunned the market, but overall, it appears to be a one-time event. Data from Cointelegraph Markets Pro and TradingView shows that the bears briefly dominated the market, with the price now in the $62,000-$63,500 range.
4 hour BTC/USDT chart. Source: TradingView
Here’s what traders and analysts are saying about the recent bitcoin price change and what could be next for the top-rated digital asset.
Support should be $66,000
Bitcoin’s rapid rally over the past three weeks has sent the price back to the significant opposition it faced in April, independent crypto analyst Rekt Capital explained. As seen below, there was a strong rejection near the $63,500 resistance level. …
The main difference this time around is that the bulls are now trying to establish this level as a new support area, which will give Bitcoin a good basis for further upward movement.
In the short term, this has become a key price level to watch as the market approaches the last week of October.
The fourth quarter has historically been optimistic
The outbreak of a new all-time high has many in the space arguing over whether it is really the right time to make a profit or whether it is time to increase position size instead.
According to David Lifshitz, Managing Partner and Chief Investment Officer at ExoAlpha, “anything is possible in the crypto room,” suggesting that “a sustained rally would cause BTC to reach $80,000 soon, a small withdrawal to $58,000 or a drop to $58,000.” $53,000 before it goes up to $80,000 and up,” both fit the bill.
Historically, “the probability of favoring a particular pullback after the last sharp pullback,” according to Lifshitz, who highlighted $64,500 and $58,000 as one of the key areas to look for potential easing in the event of a fall. Pull back and reload in the $53,000 area if the pullback gets deeper, or reload where the first stops were reached if the pullback doesn’t go deeper. ”
Overall, Lifshitz noted that more prospects look positive for Bitcoin and the broader cryptocurrency market as it enters the last quarter of 2021.
“The fourth quarter has historically been bullish, so growth can be expected by the end of the year. So overall, the medium term is optimistic, but there could be some turbulence ahead.”
Related: Bitcoin Bulls Will Reach $830 Million After BTC Options Expire Friday
Bitcoin should contain $62,000
The latter perspective was suggested by a Twitter user aka “E-Club Trading” who posted the following chart showing recent price action and key support and resistance areas.
BTC/USD 1 day chart. Source: Twitter
“Take a small profit in BTC as it fell below the previous high of $65,000. It should be above $62,000, or we can test $58,000 again in the next few sessions. I’m glad I’m not there yet..”
The total cryptocurrency market capitalization now stands at $2.548 trillion, with Bitcoin dominance at 46.5%.