Traders brace for a drop to $58K if Bitcoin price loses the $62K support

Whipsaw price motion has returned to the cryptocurrency market after Bitcoin’s (BTC) price misplaced steam at $67,100 and retracted to the $62,000 degree.  

An early morning 87% flash crash in the price of BTC at Binance US noticed the price briefly contact $10,000 and it could have set the market on edge, however typically, it seems to have been an remoted occasion. Data from Cointelegraph Markets Pro and TradingView present that bears have briefly taken management of the market with the price now fluctuating between $62,000 to $63,500.

BTC/USDT 4-hour chart. Source: TradingView

Here’s a have a look at what merchants and analysts are saying about the latest price motion for Bitcoin and what may very well be subsequent for the top-ranked digital asset.

$66,000 wants to turn into support

The speedy climb in Bitcoin over the previous three weeks pushed the price again to the main resistance degree it confronted in April, a reality highlighted by impartial crypto analyst ‘Rekt Capital.’ As proven under, there was a agency rejection close to the $63,500 resistance degree.

The principal distinction this time round is that now bulls are making an attempt to set up this degree as the new support zone, which can give BTC a good basis for a additional push increased.

For the quick time period, this has now turn into a key price degree to regulate as the market heads into the ultimate week of October.

This fall has traditionally been bullish

The breakout to a new all-time excessive has many throughout the area debating whether or not now is a good time to take earnings or if it’s time to improve place sizes as a substitute.

According to David Lifchitz, managing accomplice and chief funding officer at ExoAlpha, “In crypto-land, everything is possible,” and he urged that “a continuous uptrend taking BTC to $80,000 shortly from here, or a mild pullback down to $58,000 or even down to $53,000 before pulling higher toward $80,000 and above” have been each properly inside the realm of potentialities.

Historically talking, “probabilities would favor some pullback after the recent torrid ride,” in accordance to Lifchitz, who highlighted the $64,500 and $58,000 ranges as a few of the key areas to regulate for the potential to “lighten up positions in case of a pullback and load-up again in the $53K region if the pullback deepens, or reload where the first stops were hit if the pullback doesn’t deepen.”

Overall, Lifchitz indicated that the path forward appears constructive for Bitcoin and the wider cryptocurrency market because it enters the ultimate quarter of 2021.

Lifchitz mentioned:

“The 4th quarter has historically been bullish, so it favors an upside target by year-end. So overall bullish mid-term but maybe some light turbulence ahead.”

Related: Bitcoin bulls set to web an $830M revenue after Friday’s BTC choices expiry

Bitcoin wants to maintain $62,000

A ultimate perspective was provided by pseudonymous Twitter person ‘E-Club Trading’, who posted the following chart displaying the latest price motion and essential support and resistance zones.

BTC/USD 1-day chart. Source: Twitter

The analyst mentioned:

“A bit of profit taking in BTC as it drops below the previous high of $65,000. It needs to hold above $62,000, or we could retest $58,000 in the next few sessions. Glad to be out of the way for the moment.”

The total cryptocurrency market cap now stands at $2.548 trillion and Bitcoin’s dominance price is 46.5%.

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

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