Bitcoin Surges Above $69,000 – Analysis for October 22, 2024
Bitcoin confirms a promising technical breakout and keeps rising. Together, let's look at the Bitcoin price's possibilities going forward.
Bitcoin hit $64,500 after rising from the $60,000 support. After that, it swiftly surpassed its daily resistance, reaching $66,500. All of these swings combined to create a cup and handle pattern that, from a chartist's perspective, indicated a bullish future. Furthermore, this scenario validates the cryptocurrency's return to a medium-term positive trend. The positive momentum was then maintained until it hit $69,500. Sadly, a selling movement arrived on Monday, October 21, to slow it down. It should be mentioned that the initial resistance of the monthly pivot points was where this decline occurred.
As of this writing, the price of Bitcoin is approximately $67,800. As a result, the short-term trend has been questioned. Nonetheless, a recent recovery from the $66,700 support is noteworthy. Despite this concerning decline, Bitcoin's medium- and long-term bullish trajectory remains unaffected. In fact, Bitcoin remains above its 200- and 50-day moving averages, which seem to be progressively rising. As demonstrated by its oscillators and the price of Bitcoin itself, the cryptocurrency's momentum was revised upward before gently declining again at the beginning of the week.
E, an enthusiastic cryptocurrency trader and investor, worked with us to do the present technical analysis. Today, I work as a trainer at Family Trading, a group of thousands of independent contractors who have been in business since 2017. In a friendly and professional setting, you can find live streaming, instructional materials, and mutual support related to the financial markets.
In general, the open interest and CVD of Bitcoin perpetual contracts have changed in tandem with their underlying. This indicates an increase in speculators' interest, primarily in purchasing. The recent drop in this interest, nevertheless, points to selling pressure. We can observe that they continue to be positive on the funding rate side, indicating that Bitcoin perpetual contracts are under constant upward pressure. Regarding liquidations, they are primarily purchasing in the beginning of the week, albeit this is not very important.
BTC/USDT is presently in contact with a sizable liquidation zone, which is situated between $68,000 and $66,000, according to the liquidation heatmap. The price of the cryptocurrency has recovered, suggesting that there was buying interest in it. Right now, the biggest liquidation zone is situated at about $70,000, which is barely above the current price. The one above $72,000 is seen further up. There is a faint range between $64,000 and $63,000 below the present pricing. We can observe the region around $61,600 further down. The price being close to these levels may cause a huge spike in orders, raising the possibility of more volatility for the cryptocurrency. As a result, these areas are of great importance to investors.
We could expect a comeback to $69,500 if the price of Bitcoin continues to rise above $66,500. If you cross this area, you could lose $70,000. We may expect a climb to $72,000 if the increasing trend persists. The ATH of Bitcoin, which is approximately $73,760, may be seen farther up. A rise of over 8% would be required to reach this final level.
Bitcoin may return to $65,000 or perhaps $64,000 if it is unable to maintain its position above $66,500. If the negative trend persists, $62,000 or maybe $61,600 would be the next support to keep an eye on. We can observe the support at $60,000 further down. A decline of about 11% would be required to reach this final level.
In conclusion
Although there was a brief decline earlier this week that raised doubts about Bitcoin's short-term trend, the cryptocurrency's bullish momentum is still strong, bolstered by technical indicators that suggest a medium- and long-term upward trend. Even while this encourages optimism, it is still crucial to keep a careful eye on how the price responds to important levels in order to confirm or modify current projections. Finally, keep in mind that the price of cryptocurrencies can change quickly based on other, more fundamental issues, and that these studies are only based on technical criteria.