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Bitcoin’s Struggle to Surpass $72,000
As the end of the month approaches, Bitcoin (BTC) has made yet another attempt to reclaim the $72,000 resistance level as a support. Despite not succeeding this time, some analysts believe that Bitcoin remains in a robust position, poised for an imminent breakout. They have identified potential levels to observe closely.
BTC’s Sweet 16 Party Turns Spooky
Bitcoin, the world’s leading cryptocurrency by market capitalization, experienced a notable rally during ‘Uptober,’ climbing approximately 13% over the last month. The price of BTC has risen from a monthly low of $58,900 to near its all-time high (ATH) of $73,737. On Wednesday, it reached the $73,300 mark.
Following a positive close in September, Bitcoin is on track for its best monthly close since March, potentially achieving monthly returns between 13% and 14%, despite recent price fluctuations. On the 16th anniversary of its whitepaper, Bitcoin faced a 2% drop, casting a shadow over the market’s Halloween festivities. The cryptocurrency dipped below $71,000, hitting an intraday low of $70,600. Concurrently, Ethereum (ETH), the second-largest cryptocurrency by market cap, retreated by approximately 5.1%, losing its $2,600 support level.
Crypto analyst Ali Martinez observed that this recent decline marks the fifth consecutive rejection Bitcoin has encountered at the $72,000 level. Since reaching its ATH, Bitcoin has been repelled from this resistance level five times, with previous drops ranging from 8.2% to 18%.
Another analyst, Altcoin Sherpa, suggested that BTC might experience a further dip of 4% to 5% if it fails to maintain the $70,000 support zone. However, Sherpa remains optimistic, anticipating a potential rebound from the $70,800 to $71,400 range in the short term. With the upcoming US presidential elections, BTC is expected to face heightened volatility, with Bitfinex analysts predicting a peak in volatility between November 6 and November 8 due to market speculation and anticipation regarding the election’s impact on Bitcoin’s performance.
Is Bitcoin Gearing Up For End-Of-Year Breakout?
Cryptoinsightuk has provided insights into Bitcoin’s current market standing, highlighting that BTC remains at an ATH by Open Interest (OI). The crypto investor cautioned that the Daily Relative Strength Index (RSI) might potentially cross into bearish territory soon. Furthermore, they emphasized that maintaining the $69,600 support level is crucial for Bitcoin bulls, while a drop below $66,500 could lead to significant challenges, as it might trigger a “flush” in BTC’s open interest.
Conversely, Crypto Kaleo offered a more optimistic perspective on BTC’s price trajectory. The analyst noted that while Bitcoin did not surpass its ATH when revisiting the $20,000 threshold in 2020, it initially pulled back nearly 20% during Thanksgiving, moving from $19,400 to $16,100. BTC’s price then consolidated within this range for 30 days before breaking out in late December 2020.
The breakout was observed 219 days after the May 2020 Halving event. Currently, Bitcoin is 194 days post-halving, leading the analyst to suggest that a minor pullback should not cause alarm. As of this writing, Bitcoin has successfully held the $70,000 support level, with a trading price of $70,522.
