After coming close to its ATH, Bitcoin experienced a decline which brought its price below $68,000. Let's look at the outlook for BTC.
Bitcoin (BTC) price situation
After crossing $70,000, Bitcoin continued its expansion. It continued its progression, narrowly missing reaching its all-time high, with just $173 difference. Indeed, the flagship cryptocurrency reached a peak just below $73,600 before experiencing selling pressure which brought its price below $68,000. Thus, the rise started by Bitcoin during the last week of October was absorbed, forming a shooting star reversal candlestick. However, it should be noted that the cryptocurrency showed an increase of 10.86% for the month of October.
At the time of writing, the Bitcoin price is trading around $67,500. It is interesting to observe that the cryptocurrency oscillates around this price level, which corresponds to an area of significant value, itself located at the monthly pivot point. This thus demonstrates the technical interest of this price level. Although Bitcoin has been bearish in the short term, it is worth noting that it is still in an uptrend in the medium term. This can be confirmed by the fact that the cryptocurrency remains above its 50 and 200 day moving averages, always crossed and oriented upwards, without forgetting that the structure of the asset respects the Dow theory. Concerning the buying dynamic of BTC, unsurprisingly, it has been revised downwards, as can be seen both by its oscillators and by its price itself.
The current technical analysis was carried out in collaboration with E, 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 as well as its CVD evolve in line with the price of the underlying asset, showing decreasing interest from speculators, with a predominantly selling tendency among them. As for funding rates, we observe that they still remain positive, confirming an optimism still present among speculators on Bitcoin perpetual contracts. Regarding liquidations, they are not significant, although we can note liquidations of recently dominant long positions. This may thus illustrate a capitulation of buyers on Bitcoin perpetual contracts.
The liquidation heatmap shows that BTC/USDT has reached a significant liquidation zone located just below $73,000. Selling interest in the cryptocurrency appears to have arisen, leading to a downward revision of its price. Currently, the liquidation areas are much smaller, although some remain notable. Above the current price, we notice the area just above $73,100. Below, we observe an area close to $65,000, then lower, around $59,000. If the price approaches these levels, it could trigger a large number of orders, increasing the risk of volatility for the cryptocurrency. These areas therefore constitute a crucial point of interest for investors.
Bitcoin (BTC) price forecasts
- If the price of Bitcoin remains above $64,000, a break of $69,500 could be considered. If the upward movement continues, the $70,000 threshold could be reached, potentially followed by the $71,500 and $73,000 levels. Ultimately, this could even approach the latest high of $73,600, an advance of around 9%.
- If Bitcoin fails to stay above $64,000, a pullback towards $62,000 could be on the cards. If the decline continues, the next support could be around $60,000. Lower still, the $58,000 area represents notable support, reaching which would imply a decline of around 14%.
Conclusion
Despite recent volatility and some selling pressure, Bitcoin maintains positive momentum in the medium term, supported by favorable technical signals. Its general structure remains consistent with an upward trend, even if the buying momentum shows some signs of slowing. Thus, it will be essential to carefully monitor the price reaction at key levels in order 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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