Bitcoin’s recent performance has left investors in a state of uncertainty. The cryptocurrency approached $64,400 on October 7, only to encounter substantial resistance. This sudden bearish pressure pushed Bitcoin back to $62,000, highlighting the ongoing tug-of-war between buyers and sellers. The price chart indicates that if bearish trends persist, Bitcoin might risk losing its recent gains.
Bitcoin Struggles at $64K Mark
In the past few days, Bitcoin experienced a resurgence of bullish sentiment, climbing as high as $64,000 over the weekend. This upward momentum extended into the U.S. trading session, but selling pressure emerged at the $64K level. After briefly surpassing this milestone, Bitcoin’s price fell by 3.49%, marking a local top that led to a notable decline.
Currently hovering near $62,000, analysts are closely observing the 50-day and 200-day moving averages. The crossing of these averages in a “golden cross” pattern could indicate a bullish trend and attract new buyers. However, for this scenario to unfold, Bitcoin must maintain above the critical support level of $61,800. Failing to do so could lead to further declines, potentially targeting $57,900.
Analysts Predict New ATH for Bitcoin
Despite the recent downturn, some analysts are optimistic about Bitcoin’s future. Philip Swift, a renowned crypto analyst, pointed out that global liquidity has reached record highs, which might propel Bitcoin to new heights. According to Swift, this increase in liquidity could potentially drive Bitcoin past the $64K barrier, possibly approaching $70K, provided conditions improve. Nonetheless, short-term obstacles, such as global economic challenges and uncertainties, could still impact Bitcoin’s immediate trajectory.
Chinese Stocks Experience Major Drop
While Bitcoin’s price fluctuated, Chinese stocks experienced a sharp decline following a recent rally driven by China’s new stimulus initiatives. Major stocks like Alibaba and Baidu fell between 8% and 17%, while the Hang Seng Index suffered a 9.5% drop, marking its most significant slide since 2008. Investors appear to be taking profits as momentum slows in the Chinese market.
At the moment, Bitcoin’s next move depends on overcoming the $64K resistance level. Success in this area could pave the way for further gains. On the other hand, failure to break through might result in a deeper correction, as both global and market factors significantly influence the cryptocurrency’s direction.
