After a difficult start to the month, Bitcoin rebounded with an increase of more than 5% at the start of the week. Let's take a look at the future prospects for the BTC price.
Bitcoin (BTC) price situation
After briefly dipping below $60,000, Bitcoin attracted buying interest which allowed it to rebound and break through its resistance located around $64,500. Interestingly, this rebound took place at the annual VWAP level, as well as a Fibonacci retracement zone and a notable value zone. Furthermore, this rebound occurred on a pivot point visible across several time units.
A pivot point is a technical indicator used to spot support and resistance levels, calculated from the high, low and closing prices of the previous session.
All these elements underline the importance of this support. At the time of writing, the price of Bitcoin is trading around $65,900. It has thus exceeded its key value zones as well as its 50 and 200 day moving averages. This makes us optimistic about a continuation of the upward trend. The price of BTC now seems to be heading towards the resistance at $66,500, forming a “cup with handle”, a chart pattern which suggests a continuation of the rise. Naturally, the momentum of the parent cryptocurrency has rebounded, as evidenced by its oscillators as well as the price of Bitcoin itself.
The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today trainer at Family Tradinga community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and warm atmosphere.
Focus on derivatives (BTCUSDT)
The open interest of BTC perpetual contracts has increased, as has the underlying, which shows a growing interest from speculators, mainly buying. These observations are confirmed by the CVD, which has also increased recently, indicating an acceleration of long orders. Finally, we can note that the funding rates are positive, illustrating a very present upward pressure on Bitcoin perpetual contracts. As for liquidations, they are mostly short, which could indicate a recent capitulation of sellers on the price of Bitcoin.
The liquidation heatmap indicates that BTC/USDT has crossed the liquidation zone highlighted in the October 9 analysis, located around $65,000. It appears that this area has not triggered too much selling interest, as the price of BTC continues to rise. Now, the most significant liquidation zone is just above the current price, precisely around $67,000. Above this, we can note the liquidation zone located around $70,000. Below the current price, we can observe a key zone identified around $61,600.
Bitcoin (BTC) price forecasts
- If the price of Bitcoin remains above $62,000, we could anticipate reaching $66,500. Crossing this zone could lead towards $67,000. If the upward movement continues, we could envisage an progression up to $70,000. Higher up, we can note the resistance at $72,000, which would represent an increase close to 9%.
- If Bitcoin fails to stay above $62,000, we could envisage a return towards $60,000. The next support to watch, in case the bearish movement continues, would be around $58,900. Further down, we can note the area between $58,000 and $57,500, representing a decline of around 12%.
Conclusion
Bitcoin rebounded from a significant pullback, breaking through key resistance and confirming a bullish recovery. This movement was based on several technical indicators, reinforcing confidence in the continuation of this positive dynamic. With a favorable market configuration, the cryptocurrency is showing encouraging signs for a continuation of the uptrend. However, it remains essential to carefully monitor the price reaction at key levels to validate or adjust current forecasts. Finally, remember that these analyzes are based solely on technical criteria, and that the price of cryptocurrencies can evolve quickly depending on other more fundamental factors.
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