Bitcoin Price Consolidation Tends To “Another Leg Up”

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On October 22nd, Bitcoin (BTC) price entered a “consolidation phase” which some traders had forecast as a “consolidation phase” as investors after a continuous price surge that began on October 1st and BTC within just 55 % increase, profits secure three weeks.

Data from Cointelegraph Markets Pro and TradingView show that a wave of midday sales on Friday brought the price of Bitcoin down from the support at $ 63,300 to the $ 60,000 level.

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BTC / USDT 1-day chart. Source: TradingView

Here’s what market analysts are saying about Bitcoin’s current short-term price action.

“Bitcoin could be ready for another leg higher”

The current price action is seen as a welcome development for crypto market research firm Decentrader, which suggested that “Bitcoin by the 4th Valkyrie Bitcoin Strategy Fund (BTF).

Responding to concerns that the spike is imminent for BTC, Decentrader pointed out the history of new all-time highs, highlighting the fact that “there are no instances of Bitcoin breaking significant previous all-time highs and failing to move higher get”.

According to the company’s analysis, the current bitcoin fractal pattern suggests “that the next major stop for bitcoin would be at $ 72,000 if momentum can be sustained.

The surge in derivatives funding seen over the past few days has now “rolled back to more balanced levels” with open interest remaining in line with the uptrend, which Decentrader said will help reduce the risk of a lower correction.

As for analysts, “A weekend boost is likely to encounter initial resistance at $ 65,000, which is the 61.8% retracement of $ 66,800 and the value range high of the range.

Decentrader said:

“The price is at a critical pivot point at the time of writing – we view any corrections towards USD 50,000 as buying opportunities and a price increase in low funding, combined with rising open interest, suggesting that Bitcoin is ready for another leg.” could be higher. “

BTC is well on its way to trading like gold

One of the most popular comparisons made by financial analysts is when comparing the release of a Bitcoin ETF to the release of the first gold ETF.

According to Bloomberg Intelligence, “strong inflows for the new ProShares Bitcoin Strategy ETF show a backlog and quantitative traders targeting arbitrage opportunities that are likely to tighten spreads and put volatility under pressure.”

Bitcoin futures vs. gold futures. Source: Bloomberg Intelligence

Bloomberg Intelligence said:

“We see BTC well on its way to trading like gold.”

Related: Analysts maintain their Bitcoin price target of $ 250,000 even as BTC drops below $ 60,000

Short term pullback between $ 56,000 and $ 59,000

An insight into what could come for BTC in the short term was provided by Cointelegraph employee Michaël van de Poppe, who published the following graphic, which outlines the lower support area to keep an eye on a good re-entry point.

BTC / USD 2-hour chart. Source: Twitter

According to van de Poppe, the $ 64,000 zone was “a crucial level” for the price to exceed what it failed and “so there is a corrective move taking place”.

Poppe said:

“Overall, $ 56,000 to $ 59,000 is considered a good place to buy.”

The total market cap of the cryptocurrency is now $ 2.518 trillion and the dominance of Bitcoin is 45.5%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.