Bitcoin consolidates post surge, with prominent market analyst Egrag noting key resistance and support levels to watch for a decisive move.
Bitcoin’s recent price movement points to a consolidation phase, as it fluctuates just below the $65,000 mark. While bullish momentum appears to be building on various timeframes, market analysts remain cautious.
Analysis Points to Key Levels
According to Egrag Crypto, a prominent analyst, the three-day time frame for Bitcoin shows a concerning trend.
Per his chart, the five local tops candle formation indicates wicks from the upside, suggesting significant selling pressure at the peaks. This pattern is seen as a bearish indicator in the short term, as traders seem to be offloading positions around these levels.
#BTC Simple – 3-Day Time Frame 🕒:
The 5 local tops candle formation is showing wicks from the upside, signaling heavy selling pressure during these peaks 🕯️⬇️. This is a clear #Bearish indicator in the short term, suggesting that traders are offloading positions at these… pic.twitter.com/jdqkIJkcKR
— EGRAG CRYPTO (@egragcrypto) October 14, 2024
However, Egrag emphasized the importance of breaking above $66,500 for the next bullish push. Should Bitcoin surpass this level, the next target could be $70,000 or beyond. However, failure to close above this level might signal a deeper retest, with a projected drop to $47,000.
Such a retracement would represent a healthy correction following Bitcoin’s breakout earlier in 2024. The analyst also noted that the market remains in a range between $47,000 and $70,000 until one of these levels is breached. This range leaves both bullish and bearish outcomes in play, depending on market conditions and price movements.
Uncertainty as Election Looms
Looking ahead, Egrag pointed out that the broader macroeconomic scene could also impact Bitcoin’s next move.
The upcoming U.S. presidential election, with both Kamala Harris and Donald Trump vying for office, could create additional market volatility.
Historical October Trends Offer Insights
Meanwhile, Rekt Capital, another market analyst, recently discussed Bitcoin’s potential price action. Rekt Capital analyzed Bitcoin’s historical performance in October, noting that while it has typically performed well this month, it has closed in the red on two notable occasions: in 2014 and 2018.
These negative closings followed bull cycles and coincided with broader crypto winter periods. However, the analyst also pointed out that this year is different, given the April Bitcoin halving.
This year’s October performance has been somewhat surprising, with Bitcoin experiencing a 3.78% deficit from its September closing price by October 11. Bitcoin even dipped to a three-week low.
Despite this, Rekt Capital remains confident that Bitcoin will not close October in the red, citing the absence of a bearish cycle presently. The analyst also highlighted that the historical trend of post-halving rallies supports the belief that Bitcoin is still in a favorable position.
