What’s Holding Bitcoin Back? Analyst Says $71,000 Is The Magic Number
03 Octobre 2024 - 1:00PM
NEWSBTC
Veteran trader Peter Brandt believes that the recent rally of
Bitcoin still isn’t enough to flip the long-term bearish trend.
While BTC did have a brief surge, he insists it hasn’t reached the
levels needed to confirm a bullish reversal. Bitcoin needs to break
$71,000 first and then confirm that, says Brandt. And while he
claims this, other market analysts such as Jesse Colombo and Roman
warn that geopolitical tensions and market patterns might bring BTC
down even further. Related Reading: Breakout Looms: XRP To Hit $7.5
After ‘Wake-Up Line,’ According To Analyst QCP Capital highlights
cautious optimism, noting that the recent sell-off appears shallow,
suggesting potential for recovery. As more major traders take time
to think about it, Michal van de Poppe thinks this pullback is
short-term and would look forward to a retest of $60,000 support
before Bitcoin makes a strong rebound. For more than seven months
now, Bitcoin has traded in a downtrend with consecutive lower highs
and lower lows reinforcing bearish sentiment. Even though the
short-lived optimism had some toe-hold moments, according to
Brandt’s chart work, the larger pattern isn’t altered. BTC must
break through the higher levels of resistance at hand before a
shift to the bullish side can be seen. Resistance Levels Holding
Bitcoin Back According to Brandt, Bitcoin is caught between two
very important levels of resistance. The first is at $70,600, while
the second and the all-time high of Bitcoin is at $73,800. Both
marks have capped the upward movement repeatedly, and thus, they
are a must for Bitcoin’s next major move. Since Bitcoin is unlikely
to convincingly break above $71,000, the asset is likely going to
stay in its current consolidation scenario, Brandt believes. The
recent rally in Bitcoin did NOT disturb the 7-month sequence of
lower highs and lower lows. $BTC Only a close above 71,000
confirmed by a new ATH will indicate that the trend from the Nov
2022 low remains in force pic.twitter.com/lFO9A20VPD — Peter Brandt
(@PeterLBrandt) October 2, 2024 Roman is also one of the very
popular crypto traders with a similar opinion. He noticed that any
increases in volume along with price drops usually prove to confirm
a strong downtrend. Roman believes that Bitcoin will test the
$55,000-$57,000 range before any hope of reversal, which again puts
emphasis on struggling to break through at those resistance levels.
Moving Averages And Market Uncertainty Bitcoin’s 8-week simple
moving average (SMA) has been residing at a level of around $60,526
and has served as resistance recently on the price charts. The
price of BTC has hung off that line for a while, which indicates
the fact that market participants haven’t really decided if they
are buying or selling. It hasn’t traded too low below it to find
good strength in order to move up either. For volatility, the
Average True Range of Bitcoin is at 5,756. That’s a relatively
small level of volatility within the market. That only means the
market can generate large moves, but hasn’t built an extreme level
of volatility just yet. Dealers are watching closely for these
indicators because they could signal where Bitcoin will break next.
Geopolitics Tensions And Market Sentiment The Middle East tension
is yet another strain in the cryptocurrency market. Of course,
Bitcoin has started to surge in volatility alongside growing
concerns of global instability. The price of Bitcoin over the last
24 hours has gone down by 3% to reach $61,380. Actually, that fall
was part of the general sell-off among cryptocurrencies within
which the entire market capitalization went down by 7.6% over two
days. Bitcoin and crypto always tank when there are geopolitical
fears, unlike precious metals. That confirms my long-held belief
that crypto is not a safe-haven. It’s yet another risk asset just
like high-flying tech stocks. $BTC $GLD pic.twitter.com/SBLgLgdpKB
— Jesse Colombo (@TheBubbleBubble) October 1, 2024 According to
Jesse Colombo, a well-known market analyst, Bitcoin, as well as
other cryptocurrencies, usually worsen during periods of
geopolitical instability. As he points out: “Bitcoin and crypto
always tank when there are geopolitical fears, unlike precious
metals.” The history was mainly the same with Bitcoin when global
tensions reached their peak. It would appear the current market is
no different from this historical precedent. Related Reading: Could
XRP See A 360% Surge By Christmas? Experts Think So QCP Capital
remains optimistic, despite the bearish sentiment that pours out
from some corners. This is a token of positivity: sell-offs from a
few days ago appear shallow, and one might expect investors to
remain interested in risker assets, such as Bitcoin. Similarly,
Michal van de Poppe predicts a retest of the $60,000 support level,
suggesting the market could reverse course if that level holds.
Featured image from Finshots, chart from TradingView
Optimism (COIN:OPUSD)
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Optimism (COIN:OPUSD)
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