Bitcoin analyst sees $66K ‘local bottom’ as BTC price liquidates $200M
2024.11.03 07:33
Bitcoin (BTC) faces a “more profound pullback” after weekend BTC price weakness cost longs $200 million.
In his latest market analysis on X, popular trader Titan of Crypto joined those warning of a deeper correction on BTC/USD.
Daily timeframe BTC price battle rages
Bitcoin continues to struggle after rejecting near all-time highs of $73,800 earlier this week.
Market nerves over the upcoming United States Presidential Election have compounded an already overheated Bitcoin trading environment where open interest hit record highs.
Now, observers see the risk of further BTC price retracement before its uptrend resumes.
“Local Bottom at $66,200 Before a Bounce?” Titan of Crypto queried.
An accompanying chart showed Ichimoku cloud data for 1-day timeframes, with price deviating below one of the indicator’s key trend lines, Tenkan-sen.
“BTC couldn’t close above Tenkan, signaling a possible more profound pullback,” he continued.
“If the breakout is confirmed, we might see a retest of Kijun around $66,200, which could mark a local bottom.”
BTC/USDT 1-day chart with Ichimoku cloud data. Source: Titan of Crypto/X
Previously, Titan of Crypto named $71,300 as an important resistance level to flip to support while examining Ichimoku on monthly timeframes.
Bitcoin traders line up bounce zones
Bitcoin meanwhile liquidated $200 million of long positions on its way down to current levels, which included a brief drop below $68,000.
Related: BTC price risks new ‘FOMO’ top as Bitcoin ETF inflows near $1B daily
Data from Cointelegraph Markets Pro and TradingView reveals only a modest rebound occurring thereafter, leading to more BTC price downside predictions.
BTC/USD 1-hour chart. Source: TradingView
Popular trader Credible Crypto called the area between $65,000 and $69,000 a “must bounce zone,” reiterating that the week’s trip to near all-time highs may remain an upside deviation.
“For now, let’s see if we can get this bounce and then we can take it from there,” he concluded on Nov. 3 while warning of a “larger correction.”
Source: SuperBro
Others had more faith in a market reversal.
“Bitcoin has Pullback onto Fibonacci 0.618 level, which is a common support for a healthy pullback,” fellow trader Alan Tardigrade noted.
“If this level holds up $BTC, there will be another impulsive moves.”
BTC/USD chart with Fibonacci levels. Source: Alan Tardigrade/X
Trading sources concurred about the risk of heightened volatility during election week, which also plays host to the Federal Reserve’s next decision on interest rates.
“Despite Bitcoin’s dip below $69,000 on Friday, we continue to see significant interest in the market, with OI for both total BTC futures and BTC options staying heightened at $40.65b and $25.3b respectively (an increase of +24.20% and +36.76% compared to the start of Oct),” trading firm QCP Capital reported in part of its latest bulletin to Telegram channel subscribers.
“Options market is trading BTC 7 day implied vols at 74.4%, substantially higher than the past 7 day realised vols of 41.4%, indicating a significant risk premium around the elections.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
