As a seasoned crypto investor with battle scars from numerous market corrections and rallies, I find myself once again navigating the choppy waters of Bitcoin price action. After a brief glimmer of hope in “uptober,” the dip back to $60,000 has me questioning whether we’re in for another major correction before the next big move.
In the past few days, Bitcoin had climbed over $63,000, rekindling investors’ optimism about an “uptober.” However, that enthusiasm has waned today as the price of Bitcoin has fallen back into the $60,000 range.
Based on this less-than-attractive display, a CryptoQuant analyst named Aytekin has posed a thought-provoking query: “Could there be a final market adjustment prior to the next significant price surge?
Bitcoin Next Move: Major Correction Looming?
In a recent post on the CryptoQuant QuickTake platform, the analyst explained that Bitcoin is currently in a high open interest zone, having exceeded the critical $18 billion level. Historically, when open interest levels reached this point, major corrections followed.
The analyst mentioned that the current market sentiment appears divided, noting:
There’s a lot of uncertainty in the market about Bitcoin, as some people predict an imminent significant rise, while others think the current downtrend will continue. Many investors believe that Bitcoin might experience one last dip before reaching a new record high.
Aytekin pointed out that while funding rates are slightly above their 200-day moving average, indicating that long traders are still in control, it’s important to note that substantial price drops have historically taken place when funding rates became negative. So far, this has not occurred.
Aytekin concluded that, while a final shakeout might occur, the depth of the correction may not be as severe given the relatively moderate funding rates.
BTC Price Outlook
In simple terms, Bitcoin’s inability to surpass significant resistance points suggests that investors are uncertain about its future direction. Over the last couple of weeks, Bitcoin has held steady above $60,000, but it hasn’t managed to push higher and regain the $70,000 level.
Over the last day, Bitcoin has dropped by 2.9%, now being sold at approximately $60,485. This decrease comes after Bitcoin momentarily soared to $63,774 earlier in the week, fueling hopes that it could reach $65,000 and potentially even $70,000.
Noted crypto expert Ali has weighed in on Bitcoin’s market movements, pointing out that the cryptocurrency is currently moving along a “sloping trending channel from high to low,” or simply put, it’s been following a pattern of gradually decreasing highs and increasing lows.
As per Ali’s analysis, the asset hit the upper limit of its price channel, suggesting a possible continuation towards lower prices. He predicts that we could witness a decline reaching the middle boundary around $58,000, or even the lower boundary at $52,000, as he mentioned in his recent post on X.
It’s crucial to understand that a strong upward momentum (bullish breakout) in Bitcoin’s price seems improbable until it surpasses the $66,000 barrier, which has served as a notable resistance level in the past few weeks.
#Bitcoin remains stuck in a descending parallel channel.
Following the latest refusal at the peak level, there’s a possibility that Bitcoin could descend to the median level around $58,000, or potentially even reach the bottom limit of $52,000. A bullish surge won’t materialize until Bitcoin surpasses $66,000!
— Ali (@ali_charts) October 9, 2024
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2024-10-11 05:10