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Bitcoin price consolidation leans toward ‘another leg higher’



On Oct. 22, Bitcoin (BTC) price entered what some merchants predict to be a “consolidation part” as buyers lock in earnings following a continuous run-up in price that started on Oct. 1, seeing BTC enhance by 55% in simply three weeks. 

Knowledge from Cointelegraph Markets Professional and TradingView exhibits {that a} wave of noon promoting on Friday dropped the price of Bitcoin from assist at $63,300 all the way down to the $60,000 stage.

BTC/USDT 1-day chart. Supply: TradingView

Right here’s what market analysts are saying about Bitcoin’s present price motion for the short-term.

“Bitcoin could be ready for another leg higher”

The present price motion is seen as a welcome growth for crypto market intelligence agency Decentrader, which instructed that “Bitcoin is likely to progress higher through Q4 of 2021” thanks, largely, to the launch of the ProShares Bitcoin Technique ETF (BITO) and the Valkyrie Bitcoin Technique fund (BTF).

In response to considerations that the highest is in for BTC, Decentrader pointed to the historical past of recent all-time highs and highlighted the truth that “there are zero instances of Bitcoin breaking significant previous all-time highs and failing to continue higher.”

Based on the agency’s evaluation, the present Bitcoin fractal sample suggests “that the next major stop higher for Bitcoin would be $72,000 if momentum can be maintained, after which the 1.618 extensions suggest around $88,000 would prove to be a target of interest.”

The spike in derivatives funding seen over the past couple of days has now “reset towards more balanced levels” with open curiosity remaining in step with the uptrend, which Decentrader instructed helps to scale back the danger of correcting decrease.

As to analysts, “A weekend push higher is likely to be met with initial resistance at $65,000, which is the 61.8% retracement from $66,800 and the value area high of the range.”

Decentrader mentioned:

“Price is at a critical pivot point at the time of writing — any corrections towards $50,000 we consider buying opportunities and price appreciation into low funding, coupled with increasing open interest suggesting Bitcoin could be ready for another leg higher.”

BTC is on observe to commerce like gold

One of many widespread comparisons being made by monetary analysts is how the discharge of a Bitcoin exchange-traded fund (ETF) compares to the discharge of the primary gold ETF.

Based on Bloomberg Intelligence, “strong inflows for the new ProShares Bitcoin Strategy ETF show pent-up demand and quantitative traders targeting arbitrage opportunities, which are likely to narrow spreads and pressure volatility.”

Bitcoin futures vs. Gold futures. Supply: Bloomberg Intelligence

Bloomberg Intelligence mentioned:

“We see BTC on track to trade like gold.”

Associated: Analysts maintain their $250K Bitcoin price goal whilst BTC falls under $60K

Quick time period pullback between $56,000 and $59,000

Perception into what might come subsequent for BTC within the quick time period was supplied by Cointelegraph contributor Michaël van de Poppe, who posted the next chart outlining the decrease space of assist to control for re-entry level.

BTC/USD 2-hour chart. Supply: Twitter

Based on van de Poppe, the $64,000 zone was “a crucial level” for the price to interrupt above, which it didn’t do, and “so a corrective move is taking place.”

Poppe mentioned:

“Overall, looking at $56,000 to $59,000 as a good spot to buy.”

The general cryptocurrency market cap now stands at $2.518 trillion and Bitcoin’s dominance fee is 45.5%.

The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Each funding and buying and selling transfer entails danger, it’s best to conduct your personal analysis when making a call.

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