Bitcoin price consolidation leans toward ‘another leg higher’

On Oct. 22 Bitcoin (BTC) price entered what some merchants predict to be a “consolidation phase” as buyers lock in earnings following a continuous run-up in price that started on Oct. 1 and noticed BTC improve 55% in simply three weeks. 

Data from Cointelegraph Markets Pro and TradingView exhibits {that a} wave of noon promoting on Friday dropped the price of Bitcoin from assist at $63,300 down to the $60,000 stage.

BTC/USDT 1-day chart. Source: TradingView

Here’s what market analysts are saying about Bitcoin’s present price motion for the short-term.

“Bitcoin could be ready for another leg higher”

The present price motion is seen as a welcome growth for crypto market intelligence agency Decentrader, which instructed that “Bitcoin is likely to progress higher through Q4 of 2021” thanks largely to the launch of the ProShares Bitcoin Strategy ETF (BITO) and the Valkyrie Bitcoin Strategy fund (BTF).

In response to considerations that the highest is in for BTC, Decentrader pointed to the historical past of recent all-time highs and highlighted the truth that “there are zero instances of Bitcoin breaking significant previous all-time highs and failing to continue higher.”

According to the agency’s evaluation, the present Bitcoin fractal sample suggests “that the following main cease larger for Bitcoin can be $72,000 if momentum will be maintained, after which the 1.618 extensions suggests round $88,000 would show to be a goal of curiosity.”

The spike in derivatives funding seen over the past couple of days has now “reset towards more balanced levels” with open interest remaining in line with the uptrend, which Decentrader suggested helps to reduce the risk of correcting lower.

As to analysts, “A weekend push higher is likely to be met with initial resistance at $65,000, which is the 61.8% retracement from $66,800 and the value area high of the range.”

Decentrader said:

“Price is at a critical pivot point at the time of writing – any corrections towards $50,000 we consider buying opportunities and price appreciation into low funding coupled with increasing open interest suggesting Bitcoin could be ready for another leg higher.”

BTC is on track to trade like gold

One of the popular comparisons being made by financial analysts is how the release of a Bitcoin ETF compares to the release of the first gold ETF.

According to Bloomberg Intelligence, “strong inflows for the new ProShares Bitcoin Strategy ETF show pent-up demand and quantitative traders targeting arbitrage opportunities, which are likely to narrow spreads and pressure volatility.”

Bitcoin futures vs. Gold futures. Source: Bloomberg Intelligence

Bloomberg Intelligence said:

“We see BTC on track to trade like gold.”

Related: Analysts hold their $250K Bitcoin price target even as BTC falls below $60K

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

Insight into what may come next for BTC in the short term was provided by Cointelegraph contributor Michaël van de Poppe, who posted the following chart outlining the lower area of support to keep an eye on for 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 break above, which it failed to do, and “so a corrective move is taking place.”

Poppe said:

“Overall, looking at $56,000 to 59,000 as a good spot to buy.”

The overall cryptocurrency market cap now stands at $2.518 trillion and Bitcoin’s dominance rate is 45.5%.

The views and opinions expressed right here are solely these of the writer and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer includes threat, it’s best to conduct your individual analysis when making a choice.

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