As a seasoned analyst with over two decades of experience in traditional and cryptocurrency markets, I have learned to navigate through market turbulence with a keen eye and a steady hand. The current situation with Bitcoin (BTC) presents an interesting challenge, one that I’ve encountered many times before during my career.
Bitcoin (BTC) is experiencing a “deeper retreat” following the weekend’s drop in its price, which resulted in losses of approximately $200 million for long-term investors.
In his latest market analysis on X, popular trader Titan of Crypto joined those warning of a deeper correction on BTC/USD.
Daily timeframe BTC price battle rages
Bitcoin continues to struggle after rejecting near all-time highs of $73,800 earlier this week.
Concerns about the upcoming U.S. Presidential Election are adding fuel to an already heated Bitcoin market, with open interest reaching new peaks.
Now, observers see the risk of further BTC price retracement before its uptrend resumes.
“Local Bottom at $66,200 Before a Bounce?” Titan of Crypto queried.
A chart that included Ichimoku cloud data for daily periods was provided, displaying the price moving beneath one of its significant trend lines, known as the Tenkan-sen line.
“BTC couldn’t close above Tenkan, signaling a possible more profound pullback,” he continued.
“If the breakout is confirmed, we might see a retest of Kijun around $66,200, which could mark a local bottom.”
Earlier analysis, focusing on the Ichimoku chart in a monthly timeframe, identified $71,300 as a significant resistance level that could potentially change to support in future.
Bitcoin traders line up bounce zones
In the process of falling to its present price point, Bitcoin wiped out approximately $200 million worth of long positions, even momentarily dipping beneath $68,000.
Information gathered from CryptoMoon Markets Pro and TradingView suggests that the rebound observed is relatively small, potentially indicating further decreases in Bitcoin prices according to forecasts.
According to well-known trader Credible Crypto, the price range between approximately $65,000 and $69,000 is likely a “point where prices will bounce back.” They emphasized that this week’s surge towards record highs might be an unusual upward trend.
So, let’s first try to build some momentum with this, and we’ll reassess our next steps after that,” he summarized on November 3, adding a note of caution about potential further adjustments or corrections.
Others had more faith in a market reversal.
According to trader Alan Tardigrade, Bitcoin has dropped back to the Fibonacci 0.618 support level, a typical area where it often finds support during a normal correction.
“If this level holds up $BTC, there will be another impulsive moves.”
During election week, various trading experts agree that there could be increased market volatility. Additionally, this period coincides with the Federal Reserve’s upcoming decision regarding interest rate adjustments.
Though Bitcoin dropped below $69,000 on Friday, there remains a strong market interest as evidenced by the Open Interest (OI) for both total BTC futures and BTC options remaining high at $40.65 billion and $25.3 billion respectively. This represents an increase of 24.20% and 36.76% compared to the start of October, as reported by trading firm QCP Capital in their recent update to their Telegram channel subscribers.
“Options market is trading BTC 7 day implied vols at 74.4%, substantially higher than the past 7 day realised vols of 41.4%, indicating a significant risk premium around the elections.”
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2024-11-03 15:15