On Oct. 22 Bitcoin (BTC) price entered what some traders predict to be a “consolidation phase” as investors lock in profits following a non-stop run-up in price that began on Oct. 1 and saw BTC increase 55% in just three weeks.
Data from Cointelegraph Markets Pro and TradingView shows that a wave of midday selling on Friday dropped the price of Bitcoin from support at $63,300 down to the $60,000 level.
BTC/USDT 1-day chart. Source: TradingView
Here’s what market analysts are saying about Bitcoin’s current price action for the short-term.
“Bitcoin could be ready for another leg higher”
The current price action is seen as a welcome development for crypto market intelligence firm Decentrader, which suggested that “Bitcoin is likely to progress higher through Q4 of 2021” thanks in large part to the launch of the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy fund (BTF).
In response to concerns that the top is in for BTC, Decentrader pointed to the history of new all-time highs and highlighted the fact that “there are zero instances of Bitcoin breaking significant previous all-time highs and failing to continue higher.”
According to the firm’s analysis, the current Bitcoin fractal pattern suggests “that the next major stop higher for Bitcoin would be $72,000 if momentum can be maintained, after which the 1.618 extensions suggests around $88,000 would prove to be a target of interest.”
The spike in derivatives funding seen over the past couple of days has now “reset towards more balanced levels” with open interest remaining in line with the uptrend, which Decentrader suggested helps to reduce the risk of correcting lower.
As to analysts, “A weekend push higher is likely to be met with initial resistance at $65,000, which is the 61.8% retracement from $66,800 and the value area high of the range.”
“Price is at a critical pivot point at the time of writing – any corrections towards $50,000 we consider buying opportunities and price appreciation into low funding coupled with increasing open interest suggesting Bitcoin could be ready for another leg…..