On October 22nd, Bitcoin (BTC) price entered a “consolidation phase” which some traders had forecast as a “consolidation phase” as investors after a continuous price surge that began on October 1st and BTC within just 55 % increase, profits secure three weeks.
Data from Cointelegraph Markets Pro and TradingView show that a wave of midday sales on Friday brought the price of Bitcoin down from the support at $ 63,300 to the $ 60,000 level.
BTC / USDT 1-day chart. Source: TradingView
Here’s what market analysts are saying about Bitcoin’s current short-term price action.
“Bitcoin could be ready for another leg higher”
The current price action is seen as a welcome development for crypto market research firm Decentrader, which suggests that “Bitcoin by the 4th Valkyrie Bitcoin Strategy Fund (BTF).
Responding to concerns that the spike is imminent for BTC, Decentrader pointed out the history of new all-time highs, highlighting the fact that “there are no instances where Bitcoin breaks significant previous all-time highs and does not go any further”.
According to the company’s analysis, the current bitcoin fractal pattern suggests “that the next major stop for bitcoin would be at $ 72,000 if momentum can be sustained.
The surge in derivatives funding seen over the past few days has now rolled back to a more balanced level, with open interest staying in line with the uptrend, which Decentrader says will help reduce the risk of a lower correction.
As for analysts, “A weekend boost is likely to encounter initial resistance at $ 65,000, which is the 61.8% retracement of $ 66,800 and the value range high of the range.”
“The price is at a critical pivot point at the time of writing – we view any corrections towards $ 50,000 as buying opportunities and a price increase towards low funding combined with increasing open interest, suggesting that Bitcoin is for another step up could be ready. “
BTC is well on its way to trading like gold
One of the most popular comparisons among financial analysts is when comparing the release of a Bitcoin ETF to the release of the first gold ETF.
According to Bloomberg Intelligence, “strong inflows for the new ProShares Bitcoin Strategy ETF show a backlog and quantitative traders targeting arbitrage opportunities that are likely to tighten spreads and put volatility under pressure.”
Bitcoin futures vs. gold futures. Source: Bloomberg Intelligence
Bloomberg Intelligence said:
“We see BTC well on its way to trading like gold.”
Related: Analysts maintain their Bitcoin price target of $ 250,000 even as BTC drops below $ 60,000
Short term pullback between $ 56,000 and $ 59,000
An insight into what could come for BTC in the short term was provided by Cointelegraph employee Michaël van de Poppe, who published the following graphic, which outlines the lower support area to keep an eye on a good re-entry point.
BTC / USD 2-hour chart. Source: Twitter
According to van de Poppe, the $ 64,000 zone was “a critical level” for the price to exceed what it failed and “so a corrective move is taking place”.
“Overall, $ 56,000 to $ 59,000 is considered a good place to buy.”
The total market cap for cryptocurrencies is now $ 2.518 trillion and Bitcoin’s dominance rate is 45.5%.
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