Home News Bitcoin price consolidation leans toward ‘another leg higher’

Bitcoin price consolidation leans toward ‘another leg higher’

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Bitcoin is still a long way from its all-time high of $67,000. Analysts, on the other hand, believe that historical data and fractals hint at “another leg” higher.

In fact, Following a nonstop run-up in price began on Oct. 1 and saw BTC gain 55% in just three weeks. Bitcoin (BTC) price entered what some traders think will be a “consolidation period” on Oct. 22 as investors lock in profits.

On the other hand, According to data, a wave of noon selling on Friday sent Bitcoin’s price down from $63,300 to $60,000.

BTC/USDT 1-day chart. Source: TradingView

Hereunder what market analysts have to say about Bitcoin’s short-term price movement.

“Bitcoin might be on its way to a new high”

The recent price movement is positively visible by crypto market intelligence business Decentrader. Which predicted that “Bitcoin is anticipated to proceed higher through Q4 of 2021”. Owing in part to the debut of the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy fund (BTF).

Moreover, Decentrader responded to fears that BTC has reached its peak by citing the history of new all-time highs. Stating that “there are zero instances of Bitcoin shattering major previous all-time highs and failing to continue higher”.

Additionally, the present Bitcoin fractal pattern, according to the firm’s research, indicates that “the next big step upward for Bitcoin would be $72,000 if momentum can be sustainable, after which the 1.618 extensions suggest about $88,000 would prove to be a goal of interest.”

Furthermore, the recent increase in derivatives funding has now “reset towards more balanced levels,” with open interest maintaining in line with the uptrend, according to Decentrader, reducing the chance of a lower correction.

“A weekend push higher is anticipated to be greeted with first resistance above $65,000, which is a 61.8% retracement from $66,800 and the range’s value area high”, according to experts. Decentrader stated:

“At the time of writing, the price is at a vital pivot point – any dips towards $50,000 are considered buying opportunities, and price appreciation towards low funding, along with increased open interest, signal Bitcoin might be set for another run higher.”

BTC is on pace to trade in the same way as gold does

As a matter of fact, one of the most common analogies made by financial commentators is the release of the first gold ETF and the issuance of a Bitcoin ETF.

“Strong inflows for the new ProShares Bitcoin Strategy ETF suggest pent-up demand and quantitative traders hunting arbitrage possibilities”, according to Bloomberg Intelligence. Which is expected to tighten spreads and put downward pressure on volatility”.

Bitcoin futures vs. Gold futures. Source: Bloomberg Intelligence

Short term pullback between $56K and $59K

Michal van de Poppe gave insight into what may happen next for BTC in the short term by posting the chart below. Which shows the lower region of support to watch for a favourable re-entry position.

BTC/USD 2-hour chart. Source: Twitter

The $64,000 barrier, according to van de Poppe, was “a significant threshold” for the price to break over. It failed to do so, and “a corrective action is being taken”.

Bitcoin gains $2K in hours after BTC price bounces near previous all-time high

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