On October 22nd, Bitcoin price entered a “consolidation phase”, as predicted by some analysts, as investors gained gains after the relentless rally that began on October 1st and BTC rose 55% in just three weeks take away.
Data from TradingView shows that a wave of midday sales on Friday brought the price of Bitcoin down from the $ 63,300 support to the $ 60,000 level.
Here’s what market analysts are saying about Bitcoin’s current price action in the short term.
Bitcoin may be ready to go higher
The current price action is seen as a welcome development for Decentrader, and the company believes that “Bitcoin has the potential to grow higher by the end of the fourth quarter of 2021,” largely thanks to the launch of ProShares Bitcoin. Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF).
In response to major concerns about BTC, Decentrader pointed out the history of new all-time highs, highlighting the fact that “there has been no case where Bitcoin broke its previous all-time high with no problem”. ”
According to the company’s analysis, the current Bitcoin fractal model suggests that “the next stop for Bitcoin would be $ 72,000 if momentum can be sustained, then the 1,618 Fib extension, which points to around $ 88,000, would be a target of Interest.”
The rise in financing rates on derivatives over the past few days is now “more balanced”, with open interest (OI) remaining in line with the uptrend, which Decentrader said should help reduce the risk of a correction low.
“Any move higher towards the end of the week is likely to encounter initial resistance at $ 65,000, the 61.8% Fib retracement of $ 66,800 and the cap.
“The price is at a crucial point at the time of writing – we view any correction towards USD 50,000 as a buying opportunity and the low funding rate and rising open interest suggest that Bitcoin may be ready for buy-in.
BTC is about to start trading like gold
One of the most popular comparisons made by financial analysts is the issue of a Bitcoin ETF with the initial release of a gold ETF.
According to Bloomberg Intelligence:
“The strong inflows into BITO indicate a backlog and quant traders targeting arbitrage opportunities that may narrow spreads and increase volatility pressures.”
“We see BTC on the right track to trade like gold.”
Bitcoin futures vs. gold futures contract. Source: Bloomberg Intelligence
Short-term pullback to $ 56,000- $ 59,000
Analyst Michaël van de Poppe provided details on what could happen to BTC in the short term. He posted a chart outlining lower support to track a good re-entry.
According to van de Poppe, the $ 64,000 zone was the “critical level” for price to move above it, but it has failed and “so a corrective move is underway”.
“Overall, $ 56,000 to $ 59,000 is a good buy.”
The total crypto market cap is $ 2,532 trillion and the dominance of bitcoin is 45.5%.
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According to Cointelegraph