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Before its monthly close, Bitcoin (BTC) saw another unsuccessful attempt to reclaim the $72,000 resistance as a support level. Despite the decline, some analysts see the cryptocurrency still in a strong position for an upcoming breakout, setting the next levels to watch.
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BTC Sweet 16 party turns scary
Bitcoin, the largest cryptocurrency by market cap, posted an impressive “Uptober” rally, rising nearly 13% in the past 30 days. BTC price jumped from a monthly low of $58,900 to near an all-time high (ATH) of $73,737, reaching the $73,300 level on Wednesday.
After closing September in the green, the major cryptocurrency is set to have its best monthly close since March, likely posting around $13 to 14% in monthly returns despite the recent price action.
On its 16th birthday, Bitcoin posted a scary 2% drop, throwing the rest of the market into a red Halloween party. BTC price fell below $71,000, hitting an intraday low of $70,600. Meanwhile, the second-largest cryptocurrency by market cap, Ethereum (ETH), fell by about 5.1%, missing the $2,600 support area.
Cryptocurrency analyst Ali Martinez He pointed out Today’s drop is the fifth consecutive rejection that BTC has faced at $72,000. Since ATH, Bitcoin has been rejected from this resistance level five times, falling between 8.2% and 18% the previous four times.
Altcoin Analyst Sherpa Suggested That BTC could see a 4% to 5% decline if the largest cryptocurrency does not hold the $70,000 support area. However, Sherpa believes that the cryptocurrency should “see some kind of bounce” from the $70,800 to $71,400 area in the short term.
BTC is expected to have a very volatile week ahead of the US presidential election. Bitfinex analysts expect Bitcoin’s volatility to peak between November 6 and 8, as speculation and anticipation over the election outcome weigh on the cryptocurrency’s performance.
Is Bitcoin preparing for an end-of-year breakout?
Cryptoinsightuk affected the performance of Bitcoin, Pointing That BTC remains at ATH through open interest (OI). Cryptocurrency investors believe that the daily Relative Strength Index (RSI) is likely to be “bearish” today.
He also highlighted that $69,600 should act as a key support level for Bitcoin bulls, but warned that missing the $66,500 range could be “messy” as BTC open interest “will flow.”
Meanwhile, Kallio encryption to publish More bullish outlook for BTC price movement. The analyst highlighted that the major cryptocurrency did not cross the ATH when it retested the $20,000 mark in 2020.
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Instead, Bitcoin initially fell nearly 20% over Thanksgiving, moving from $19,400 to $16,100. Furthermore, Bitcoin price accumulated within this range for 30 days before the breakout, and saw the next rally in late December 2020.
The analyst noted that the breakout occurred 219 days after the halving in May 2020. Since Bitcoin is currently 194 days away from the halving, the analyst opines that “a little bit of a pullback here is not a cause for concern.”
As of this writing, Bitcoin has held the $70,000 support level, and is currently trading at $70,522.
Featured image from Unsplash.com, chart from TradingView.com