Bitcoin price consolidation tends to “the other leg higher”

Bitcoin on October 22 (Bitcoin) The price has entered the “integration phase” predicted by some traders, as investors locked in profits after the uninterrupted price increase that began on October 1st, and saw BTC rise by 55% in just three weeks.

Data from Cointelegraph Markets Pro with Transaction view It shows that a wave of selling at noon on Friday caused the price of Bitcoin to fall from the support level of $63,300 to the level of $60,000.

BTC/USDT 1-day chart. Source: TradingView

The following are the views of market analysts on the current short-term price trend of Bitcoin.

“Bitcoin may be ready to go higher”

The current price trend is regarded as a welcome development by the crypto market intelligence company Decentrader, which indicates that “Bitcoin may make higher progress in the fourth quarter of 2021”, thanks in large part to the ProShares Bitcoin strategy ETF (BITO) and Valkyrie Bitcoin Strategic Fund (BTF).

In response to people’s concerns about BTC reaching its peak, Decentrader pointed to a new historical high and emphasized the fact that “Bitcoin breaks through the historical high and fails to continue to rise at zero.”

According to the company’s analysis, the current Bitcoin fractal pattern shows that “if momentum can be maintained, Bitcoin’s next major stop loss will be $72,000, after which the expansion of 1.618 indicates that approximately $88,000 will prove to be an interesting target. .”

The surge in derivatives financing in the past few days has now been “reset to a more balanced level,” and the open interest is in line with the upward trend, which Decentrader believes will help reduce the risk of a callback.

For analysts, “the weekend push may encounter initial resistance of $65,000, which is the 61.8% retracement of $66,800, and is also the value zone high of the range.”

Decentrader said:

“At the time of writing, the price is at a pivotal point-any correction to $50,000, we consider buying opportunities and price appreciation to low funds, plus an increase in open interest, indicating that Bitcoin may be ready to go higher again .”

BTC is expected to trade like gold

A popular comparison made by financial analysts is how the release of the Bitcoin ETF compares to the release of the first gold ETF.

According to Bloomberg News, “The strong inflow of the new ProShares Bitcoin strategy ETF indicates pent-up demand and quantitative traders are targeting arbitrage opportunities, which may narrow the spread and put pressure on volatility.”

Bitcoin futures and gold futures.Source: Bloomberg Intelligence

Bloomberg Intelligence says:

“We see that BTC is expected to be traded like gold.”

related: Even if BTC falls below $60,000, analysts still maintain a Bitcoin price target of $250,000

The short-term correction is between US$56,000 and US$59,000

Cointelegraph contributor Michaël van de Poppe provided insight into what might happen to BTC in the short term. He published the following chart, which outlines the lower support areas to keep a close eye on good re-entry points.

BTC/USD 2-hour chart.Source: Twitter

According to van de Poppe, the $64,000 area was a “critical level” for price breakthroughs, but it failed to do so, “and therefore corrective measures are being taken.”

Pope said:

“Overall, consider $56,000 to $59,000 as a good place to buy.”

The overall cryptocurrency market value is now 2.518 trillion U.S. dollars, and Bitcoin’s dominance rate is 45.5%.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Every investment and trading action involves risk, and you should conduct your own research when making a decision.