Bitcoin must hold this 2021 level as traders see BTC price dip ‘over’
2024.10.24 04:03
Bitcoin (BTC) has two new key levels to preserve as support as BTC price action bounces from ten-day lows.
In his latest X coverage on Oct. 24, Keith Alan, co-founder of trading resource Material Indicators, drew attention to an old top from April 2021.
$65,000 becomes do-or-die BTC price level
Bitcoin retraced this week after reaching $69,000 for the first time since the summer, but sellers did not stay in control for long.
As stop-loss levels began to hit, downside momentum briefly accelerated after the Oct. 23 Wall Street open, data from Cointelegraph Markets Pro and TradingView shows.
The result was a trip to $65,000, marking Bitcoin’s lowest levels since Oct. 10. A subsequent rebound nonetheless took BTC/USD back above $67,000.
BTC/USD 1-hour chart. Source: TradingView
In so doing, bulls avoided a test of a crucial weekly trend line — the 21-week simple moving average (SMA).
Currently, at $62,700, that level needs to stay untouched with “no wicks below it,” Alan argues, which would, in turn, be “a sign that the short-term uptrend is intact.”
This week’s BTC price low, however, did come within inches of its old all-time high from the last cycle — not from November 2021, but April that year, when it reached $64,950 on Bitstamp.
“Thursday brought us a solid test of the Mid-Cycle Top, and now it’s closely correlated with the 21-Week MA,” Alan summarized.
“Let’s see if BTC can hold above that technical support through the weekly close.”
An accompanying chart laid out zones of interest along with trading signals from one of Material Indicators’ proprietary trading tools.
BTC/USD 1-day chart. Source: Keith Alan/X
Analyst sees Bitcoin all-time high retest in “2-4 weeks”
As Cointelegraph reported, risk-asset markets, including crypto, continue to anticipate volatility around the US Presidential Election and Federal Reserve interest rate decision in two weeks’ time.
Related: Bitcoin ETF $79M outflow ends 2-week bull run amid ‘sideways’ BTC price
Before that, US macroeconomic data prints may add to the uncertainty, with Oct. 24 seeing the Purchasing Managers’ Index (PMI) and weekly jobless claims released.
“A hot Jobless Report could trigger a reversion,” Material Indicators continued about the data’s potential BTC price impact.
It added that its latest bullish trading signal would be “invalidated” should BTC price revert below the $65,000 mark.
Other market participants were confident that the worst was over.
“Stop losses and liquidations hit, we even went a bit lower due to slippage mostly,” popular trader CrypNuevo told X followers.
“I think LTF worst case scenario would be forming a W bottom to fill the wick that was created today. More conviction when support is reclaimed but I think we’re good.”
BTC/USDT 1-hour chart. Source: CrypNuevo/X
Crypto trader, analyst and entrepreneur Michaël van de Poppe went further, even predicting a rematch with all-time highs for Bitcoin within the next month.
“The dip has happened on Bitcoin,” part of his latest X post read.
“I think that the correction is over as today’s macroeconomic season is kicking off with PMI data. Expecting to see the ATH test in the next 2-4 weeks.”
BTC/USDT 6-hour chart. Source: Michaël van de Poppe/X
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.
