After weeks of massive volatility, Bitcoin faces heightened risk after failing to break above a key resistance level of around $64,000. Following the Federal Reserve’s decision to cut interest rates, many investors and traders anticipated a full-blown rally throughout October. However, it appears that the expected surge may not materialize just yet.
Top crypto analyst Carl Runefelt has shared his insights on the current situation, emphasizing the significance of the $64,000 resistance. Breaking past this crucial level is critical for Bitcoin to regain bullish momentum and fuel a rally into Q4 2024. Bitcoin could struggle to sustain upward momentum without this breakout, leaving the market vulnerable to further downside.
The next few days will be critical for Bitcoin’s price action as traders and analysts closely watch how the market responds. With Q4 underway, Bitcoin’s performance could set the tone for the broader crypto market. As investors brace for the market’s next move, the outcome of Bitcoin’s battle with the $64,000 level will likely determine whether the rally continues or stalls.
Bitcoin Analyst Predicts Sub-$60K Dip
After Bitcoin’s recent failed breakout attempt, the cryptocurrency is trading at a critical juncture at around $62,000. This level will likely determine whether BTC can reclaim momentum and push past local highs of $66,000 or drop further to $60,000 or even lower.
Analysts and investors are growing increasingly uncertain as the bullish sentiment that dominated the past few weeks is beginning to fade. Now, fear and hesitation are creeping back into the market.
Top crypto analyst Carl Runefelt recently shared a detailed technical analysis on X, highlighting the precarious situation Bitcoin finds itself in. According to Runefelt, Bitcoin’s price structure has become fragile after two failed attempts to break through the key resistance level. He notes that BTC’s price dropped below important support levels after each failure, which could lead to further downsides.
In his analysis, Runefelt sets a price target of $60,000, marking a 5% dip from current levels if Bitcoin cannot reclaim its previous momentum. He warns that if Bitcoin fails to hold critical support at $60,000, it could signal the beginning of a deeper correction.
As market sentiment shifts 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 daily 200 moving average (MA) at $63,538. The price recently surged 25%, only to experience a sharp 10% dip, putting BTC at a critical juncture. Bitcoin faces serious risk in the coming weeks if it does not break past local supply levels around $66,000.
The daily 200 MA has been a critical resistance level, and without reclaiming it soon, bearish momentum could take hold. If Bitcoin cannot recover and break through this level, analysts expect a deeper correction down to $57,500. This area is considered a crucial demand zone that could provide support, but a failure to hold above current levels would signal a more significant retracement.
Bulls must push the price back above the daily 200 MA in the short term to avoid further downside risk. The next few days will be critical for determining whether BTC can stabilize or faces continued downward pressure.
Featured image from Dall-E, chart from TradingView