Bitcoin Price Consolidation Tends To Take “Another Leg Up”

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On October 22nd, Bitcoin (BTC) price entered a “phase of consolidation” forecast by some traders as investors held profits and BTC rose 55% after a sustained rise in prices that began on October 1st. increased. in just three weeks.

Data from Cointelegraph Markets Pro and TradingView show that a wave of midday sales on Friday brought the price of Bitcoin down from the support at $ 63,300 to the $ 60,000 level.

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BTC / USDT 1-day chart. Source: TradingView

Here’s what market analysts are saying about Bitcoin’s current short-term price action.

“Bitcoin could be ready for another leg higher”

The current price action is seen as a welcome development for crypto research firm Decentrader, which is suggesting that “Bitcoin is likely to go higher by the fourth quarter of 2021,” largely thanks to the launch of the ProShares Bitcoin Strategy ETF (BITO). and the Valkyrie Bitcoin Strategy Fund (BTF).

Responding to concerns that the spike is imminent for BTC, Decentrader pointed out the history of new all-time highs, highlighting the fact that “there are no instances where Bitcoin breaks significant previous all-time highs and stops moving”.

According to the company’s analysis, the current Bitcoin fractal pattern suggests “that the next major stop for Bitcoin would be at $ 72,000 if momentum can be sustained, after which the 1,618 expansions would prove to be a target of interest.”

The surge in derivatives funding seen over the past few days has now rolled back to a more balanced level, with open interest staying in line with the uptrend, which Decentrader says will help reduce the risk of a lower correction.

As for analysts, “A weekend boost is likely to encounter initial resistance at $ 65,000, which is the 61.8% retracement of $ 66,800 and the value range high of the range.”

Decentrader said:

“The price is at a critical pivot point at the time of writing – we view any corrections towards $ 50,000 as buying opportunities and a price increase in low funding, combined with growing open interest suggesting that Bitcoin may be for another Stage could be ready. “

BTC is well on its way to trading like gold

One of the most popular comparisons made by financial analysts is when comparing the release of a Bitcoin Exchange Traded Fund (ETF) to the release of the first gold ETF.

According to Bloomberg Intelligence, “strong inflows for the new ProShares Bitcoin Strategy ETF show a backlog and quantitative traders targeting arbitrage opportunities that are likely to tighten spreads and put volatility under pressure.”

Bitcoin futures vs. gold futures. Source: Bloomberg Intelligence

Bloomberg Intelligence said:

“We see BTC well on its way to trading like gold.”

Related: Analysts maintain their Bitcoin price target of $ 250,000 even as BTC drops below $ 60,000

Short-term pullback between $ 56,000 and $ 59,000

An insight into what could come for BTC in the short term was provided by Cointelegraph employee Michaël van de Poppe, who published the following graphic, which outlines the lower support area to keep an eye on a good re-entry point.

BTC / USD 2-hour chart. Source: Twitter

According to van de Poppe, the $ 64,000 zone was “a critical level” for the price to exceed what it failed and “so a corrective move is taking place”.

Poppe said:

“Overall, $ 56,000 to $ 59,000 is considered a good place to buy.”

The total market capitalization of the cryptocurrency is now at $ 2.518 trillion and the dominance rate of Bitcoin is 45.5%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.