As a seasoned crypto investor with over a decade of experience navigating through the volatile cryptocurrency market, I have learned to appreciate the unpredictability that comes with investing in Bitcoin (BTC). The recent correction from $68,500 down to $67,446 over the weekend was not unexpected, but it certainly caught my attention.
The price of Bitcoin (BTC) experienced a significant decline of approximately 8% from October 29 to November 3, reaching a weekend low of $67,446. Despite this bearish short-term trend, the overall market outlook for BTC remains bullish. However, as the US presidential election results are scheduled for November 5, the market anticipates increased volatility in Bitcoin trading sessions leading up to that date.
Bitcoin’s recent upward trend can be traced to the lowest point it reached on September 6, which was at $52,510. Since then, every correction within its rising high-high (HH) and high-low (HL) pattern has tested the Fibonacci “golden zone” that falls between 50% and 61.8%.
The graph demonstrates Bitcoin displaying comparable patterns, as it finished the weekend trading above the 0.618 mark. If Bitcoin’s daily closing price surpasses $68,500 within the next 48 hours, it will establish a bullish structure in lower time frames (LTF). As a result, Bitcoin could swiftly rebound and exceed the significant psychological level of $70,000.
An unidentified trader on platform X, known as Cold Blooder Shiller, expressed a comparable optimistic outlook, suggesting that reclaiming the $69,200 level is “significant” in the short term perspective. The trader further explained this level’s importance.
“You can make a very strong case for holding above $69,000 on the daily as a good retest and sign of strength.”
Will a V-shaped reversal happen at $66,000?
If Bitcoin fails to maintain the $68,500 mark on the daily chart, potential support levels may emerge around $65,000 to $66,000. As per Skew, an on-chain analyst, this price range exhibited “consistent buying pressure” during Bitcoin’s latest bull run in October, contributing to prices surpassing $70,000.
At the rally, there was a noticeable change in the market price of Bitcoin on Binance between approximately $66,000 and $67,000. This shift occurred due to an increase in spot purchases, causing Bitcoin’s value to surpass $69,000. As a result, this specific price range demonstrated significant liquidity and depth within the order book. Consequently, this area now stands out as a prominent location for future market buy orders.
According to the graph, the price of Bitcoin struggled to break through the $66,000-$67,000 barrier on multiple occasions, only doing so later when it reached $73,660. Interestingly, prior to this high, that same range served as a supportive level for BTC prices.
In other words, this crucial aspect might provide backing for Bitcoin as it prepares for a possible U-shaped reversal following the announcement of the US election results.
Bitcoin traders are at risk of liquidation
Regardless of the election outcome, many supporters of cryptocurrency are optimistic about Bitcoin’s future direction, believing it can only go up over the long term. Charles Edwards, founder of Capriole Fund, suggests that the current trend with Bitcoin ETFs indicates the market is unphased by who becomes the U.S. president in the long run.
Cobie, a popular crypto trader, shared in this view.
Given the unexpected win by Harris, there might be temporary drops in Bitcoin’s value as traders decide to close their long positions and pause trading for a while, waiting for market instability to subside.
Given these circumstances, a repeat test at approximately $62,000 could occur due to the presence of over $300 million worth of leveraged positions situated near that price level.
A potential support zone might form near $62,000, and if the price falls to this point, there could be a combined examination of the 50-day, 100-day, and 200-day Exponential Moving Average (EMA) lines on the daily graph.
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2024-11-04 21:51