The Whipsaw price action has returned to the crypto market after the price of Bitcoin (BTC) fell slightly to $ 67,100 and fell to $ 62,000.
An 87% early morning flash crash in BTC price at Binance US briefly hit $ 10,000 and may have propelled the market higher, but overall this appears to be a separate event. Data from Cointelegraph Markets Pro and TradingView show that bears have temporarily taken control of the market, with prices currently hovering between $ 62,000 and $ 63,500.
Here’s what traders and analysts are saying about Bitcoin’s recent price action, and what could happen next for the top-rated digital asset.
$ 66,000 must be converted into support
Bitcoin’s rapid escalation over the past three weeks has pushed the price back down to the key resistance in April, a fact highlighted by independent crypto analyst Rekt Capital. As shown below, there was solid rejection near the resistance level of $ 63,500.
Mid-April 2021, #BTC denied from the orange resistance zone
– Rekt Capital (@rektcapital) October 21, 2021
The main difference for now is that the bulls are currently trying to establish this level as a new support zone that provides BTC with a good foundation to push higher.
In the short term, this has become an important price level to watch as the market enters the last week of October.
Q4 used to be growth
The breakout to a new all-time high leaves many in the room debating whether this is a good time to take profit or the right time to scale positions instead.
According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, “Anything is possible in crypto,” and he suggests that “a sustained upward trend in BTC here to $ 80,000 or a slight decrease to $ 58,000 or even one Decrease goes to $ 53,000 before rising to $ 80,000 or more “are all within the realm of possibility.
According to Lifchitz, who highlighted the $ 64,500 and $ 58,000 levels as some of the key areas pointing to the potential to “add positions in the event of a pullback and reload in the $ 53,000 region if the pullback deepens or deepens.” again intensified “has highlighted places where the first stops were reached when the pullback is not deeper”.
Overall, Lifchitz points out that the path ahead for Bitcoin and the broader crypto market looks positive as we move into the final quarter of 2021.
“The fourth quarter was historically bullish, so it favors a bullish year-end target. So overall bullish in the medium term, but there could be some uncertainty. “
Related: Bitcoin Bulls made a net profit of $ 830 million after the BTC options expired on Friday
Bitcoin must hold $ 62,000
One final view was given by a Twitter user nicknamed “E-Club Trading” who sent The following chart shows recent price action and key areas of support and resistance.
“A small win at BTC as it fell below its previous high of $ 65,000. It has to hold over $ 62,000 or we could retest $ 58,000 in the next few sessions. It is a pleasure to go at this time. “
The total crypto market cap is $ 2.548 trillion and the dominance of bitcoin is 46.5%.