The Bitcoin (BTC), price entered what traders believe to be a “consolidation stage” as investors lock profits after a run-up that started on Oct. 1, and saw BTC rise 55% in three weeks.
Cointelegraph Markets Pro and TradingView data show that Bitcoin’s price dropped from $63,300 support to $60,000 on Friday due to a wave in midday selling.
1-day chart of BTC/USDT Source: TradingView
Here are the views of market analysts on Bitcoin’s short-term price action.
“Bitcoin could be ready to go for another leg higher”
Decentrader believes the current price action is a positive development in crypto market intelligence. It suggested that Bitcoin would likely rise through Q4 2021, largely due to the ProShares Bitcoin Strategy ETF(BITO) or the Valkyrie Bitcoin Strategy ETF fund (BTF).
Decentrader responded to fears that Bitcoin is at its peak. They pointed to the history and new all-time highs, and noted that there are no instances where Bitcoin has broken significant all-time highs in the past.
According to the firm’s analysis, Bitcoin’s current fractal pattern suggests that $72,000 would be the next major stop for Bitcoin, assuming momentum is maintained. After which, the 1.618 extensions would suggest that around $88,000 would be an attractive target.
Decentrader said that the spike in derivatives funding over the last few days has “reset toward more balanced levels”, with open interest remaining in line to the uptrend. This helps reduce the chance of a correction lower.
Analysts believe that a weekend push higher will be met by initial resistance at $65,000. This is the 61.8% Retracement from $66,800, and the high value area of the range.
“Price is at a pivot point at the moment of writing. Any corrections towards $50,000, we consider buying opportunities. Price appreciation into low financing coupled with increasing open interests suggests that Bitcoin could be ready to go higher.”
BTC is poised to trade like gold
Financial analysts often compare the launch of a Bitcoin ETF to that of the first gold ETF.
Bloomberg Intelligence reports that there has been a strong inflow to the ProShares Bitcoin Strategy ETF. This is a sign of pent-up demand, and quant traders are targeting arbitrage opportunities. These spreads will likely narrow and increase volatility.
Bitcoin futures vs. Gold futurs. Source: Bloomberg Intelligence
Bloomberg Intelligence stated:
“We believe that BTC is on track to trade as gold.”
Related: Analysts keep their $250K Bitcoin price target despite the fact that BTC is below $60K
Short-term pullbacks between $56,000 to $59,000
Michael van de Poppe (Cointelegraph contributor) provided insight into the future of Bitcoin in the short-term. He posted the following chart that shows the lower support area to watch out for a good point for re-entry.
BTC/USD 2-hour chart. Source: Twitter
Van de Poppe stated that the $64,000 level was a critical level for the price to break through. It failed to do so, and “so a corrective action is being taken.”
“Overall, $56,000-59,000 is a great place to buy.”
The total cryptocurrency market is now worth $2.518 trillion, and Bitcoin’s dominance rate of 45.5% stands at the moment.
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