Traders brace for a drop to $58K if Bitcoin price loses the $62K support

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Whipsaw worth motion has returned to the cryptocurrency market after Bitcoin’s (BTC) worth misplaced steam at $67,100 and retracted to the $62,000 degree.  

An early morning 87% flash crash in the price of BTC at Binance US noticed the worth briefly contact $8,200 and it might have set the market on edge, however typically, it seems to have been an remoted occasion. Information from Cointelegraph Markets Pro and TradingView present that bears have briefly taken management of the market with the worth now fluctuating between $62,000 to $63,500.

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BTC/USDT 4-hour chart. Supply: TradingView

Right here’s a have a look at what merchants and analysts are saying in regards to the current worth motion for Bitcoin and what may very well be subsequent for the top-ranked digital asset.

$66,000 must develop into assist

The speedy climb in Bitcoin over the previous three weeks pushed the worth again to the foremost resistance degree it confronted in April, a reality highlighted by impartial crypto analyst ‘Rekt Capital.’ As proven beneath, there was a agency rejection close to the $63,500 resistance degree.

The principle distinction this time round is that now bulls are trying to determine this degree as the brand new assist zone, which can give BTC a great basis for an additional push greater.

For the brief time period, this has now develop into a key worth degree to control because the market heads into the ultimate week of October.

This fall has traditionally been bullish

The breakout to a brand new all-time excessive has many throughout the area debating whether or not now is an efficient time to take income or if it’s time to extend place sizes as a substitute.

In keeping with David Lifchitz, managing companion and chief funding officer at ExoAlpha, “In crypto-land, all the pieces is feasible,” and he urged that “a steady uptrend taking BTC to $80,000 shortly from right here, or a gentle pullback right down to $58,000 and even right down to $53,000 earlier than pulling greater towards $80,000 and above” have been each effectively throughout the realm of potentialities.

Traditionally talking, “possibilities would favor some pullback after the current torrid trip,” in line with Lifchitz, who highlighted the $64,500 and $58,000 ranges as among the key areas to control for the potential to “loosen up positions in case of a pullback and load-up once more within the $53K area if the pullback deepens, or reload the place the primary stops have been hit if the pullback would not deepen.”

Total, Lifchitz indicated that the trail forward appears optimistic for Bitcoin and the broader cryptocurrency market because it enters the ultimate quarter of 2021.

Lifchitz mentioned:

“The 4th quarter has traditionally been bullish, so it favors an upside goal by year-end. So total bullish mid-term however possibly some mild turbulence forward.”

Associated: Bitcoin bulls set to net an $830M profit after Friday’s BTC options expiry

Bitcoin wants to carry $62,000

A ultimate perspective was supplied by pseudonymous Twitter consumer ‘E-Membership Buying and selling’, who posted the next chart exhibiting the current worth motion and vital assist and resistance zones.

BTC/USD 1-day chart. Supply: Twitter

The analyst mentioned:

“A little bit of revenue taking in BTC because it drops beneath the earlier excessive of $65,000. It wants to carry above $62,000, or we may retest $58,000 within the subsequent few periods. Glad to be out of the best way for the second.”

The general cryptocurrency market cap now stands at $2.548 trillion and Bitcoin’s dominance charge is 46.5%.

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