On October 22 Bitcoin (BTC) the price entered what some traders predict will be a "consolidation phase" as investors lock in profits after a continued price surge that started on October 1 and saw BTC surge 55% in just three weeks.
Data of Cointelegraph Markets Pro and TradingView shows that a selloff at noon on Friday lowered the price of Bitcoin from the support at $ 63,300 to the $ 60,000 level.
Here's what market analysts are saying about the current short-term Bitcoin price action.
"Bitcoin could be poised for another higher leg"
The current price action is seen as a welcome development for cryptocurrency market intelligence firm Decentrader, which suggested that "Bitcoin is likely to progress higher through Q4 2021" thanks in large part to the launch of ProShares Bitcoin Strategy. ETF (BITO) and the Valkyrie Bitcoin Strategy Fund (BTF).
In response to concerns that BTC is on top, Decentrader pointed to the history of new all-time highs and highlighted the fact that "there are no instances of Bitcoin breaking significant all-time highs and not continuing higher."
Based on the company's analysis, the current Bitcoin fractal pattern suggests that "the next highest major stop for Bitcoin would be $ 72,000 if momentum can be sustained, after which extensions of 1,618 suggest that around $ 88,000 would demonstrate be a target of interest. "
The spike in derivatives funding seen in recent days has "reset to more balanced levels" with open interest remaining in line with the uptrend, which Decentrader suggested helps reduce the risk of correcting down.
As for analysts, "A weekend upside momentum is likely to meet initial resistance at $ 65,000, which is the 61.8% retracement from $ 66,800 and the highest value area of the range."
Decentrader said:
"Price is at a critical pivot point at the time of writing: any correction towards $ 50,000 we consider buying opportunities and price appreciation in low funding coupled with growing open interest suggesting that Bitcoin could be ready to go. another higher section ".
BTC is on its way to trade like gold
One of the popular comparisons financial analysts make is how the launch of a Bitcoin ETF compares to the launch of the first gold ETF.
According to Bloomberg Intelligence, "Strong entries for the new ProShares Bitcoin Strategy ETF show pent-up demand and quant traders pointing to arbitrage opportunities, which will likely reduce spreads and push volatility."
Bloomberg Intelligence said:
"We see BTC on its way to trade like gold."
Related: Analysts Maintain Their $ 250K Bitcoin Price Target Even As BTC Falls Below $ 60K
Short-term reversal between $ 56,000 and $ 59,000
Cointelegraph contributor Michaël van de Poppe provided insight into what may happen next for BTC in the short term, who posted the chart below outlining the lower support area to keep an eye out for a good re-entry point.
According to van de Poppe, the $ 64,000 zone was "a crucial level" for the price to break above, which it was unable to do, and "so corrective action is being taken."
Poppe said:
"In general, consider $ 56,000 to $ 59,000 as a good place to shop."
The overall cryptocurrency market capitalization is now $ 2.518 trillion and Bitcoin's dominance rate is 45.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.
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