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After weeks of massive volatility, Bitcoin faces increasing risks after failing to break the key resistance level of around $64,000. Following the Federal Reserve’s decision to cut interest rates, many investors and traders expected a full hike throughout October. However, it appears that the expected rise may not be achieved yet.
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Chief cryptocurrency analyst Karl Roenfeldt shared his thoughts on the current situation, emphasizing the importance of the $64,000 resistance. Passing this crucial level is crucial for Bitcoin to regain upward momentum and consolidate the rally in Q4 2024. Bitcoin may struggle to maintain upward momentum without this breakout, leaving the market vulnerable to further declines.
The next few days will be crucial for Bitcoin price movement, as traders and analysts are closely monitoring how the market responds. As Q4 begins, Bitcoin’s performance could set the tone for the broader cryptocurrency market. As investors prepare for the next step in the market, the outcome of Bitcoin’s battle with the $64,000 level will likely determine whether the rally will continue or stop.
Bitcoin analyst expects a drop below $60,000
After Bitcoin’s latest failed breakout attempt, the cryptocurrency is trading at a critical juncture at around $62,000. This level will likely determine whether BTC can regain momentum and push the local highs at $66,000 or drop further to $60,000 or even lower.
Uncertainty is increasing among analysts and investors, as the bullish sentiment that dominated the past few weeks begins to fade. Now fear and hesitation are returning to the market.
One of the top cryptocurrency analysts, Karl Roenfeldt, recently weighed in Detailed technical analysis on Xhighlighting the precarious situation in which Bitcoin finds itself. According to Runefelt, Bitcoin’s price structure has become fragile after two failed attempts to break through the key resistance level. He points out that Bitcoin price fell below important support levels after each failure, which could lead to further downsides.
In his analysis, Runefelt set a price target of $60,000, which represents a 5% decline from current levels if Bitcoin cannot regain its previous momentum. He warns that if Bitcoin fails to hold the crucial support at $60,000, this could signal the beginning of a deeper correction.
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With market sentiment shifting from bullish to fearful, the next few days will determine whether Bitcoin can regain its strength or face a prolonged decline. Investors are watching closely, preparing for the market’s next move.
BTC Price Action: Key Levels to Watch
Bitcoin is trading at $62,421 after failing to break above the 200 daily moving average (MA) at $63,538. The price recently rose by 25%, but saw a sharp decline of 10%, putting Bitcoin at a critical juncture. Bitcoin faces serious risks in the coming weeks if it does not exceed local supply levels of around $66,000.
The 200 daily moving average has been a critical resistance level, and without reclaiming it soon, bearish momentum may take hold. If Bitcoin is unable to recover and break through this level, analysts expect a deeper correction all the way to $57,500. This area is considered a crucial demand area that could provide support, but failure to stay above current levels would indicate a more significant bounce.
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The bullish move should push the price back above the daily 200 MA in the short term to avoid further downside risks. The next few days will be crucial to determine whether BTC can stabilize or face continued downward pressure.
Featured image by Dall-E, chart from TradingView