Traders brace for a drop to $58K if Bitcoin price loses the $62K support

After Bitcoins (BTC), price dropped to $67,100, Whipsaw has seen price action return to the cryptocurrency market and retracted down to $62,000.

The price of Bitcoin at Binance US briefly touched $10,000 in an 87% flash crash early morning. Although it may have put the market on edge it seems to have been an isolated incident. Cointelegraph Markets Pro and TradingView data show that bears briefly took control of the market, with the price fluctuating between $62,000 and $63,500.

Chart for BTC/USDT 4 hours TradingView

Below is a list of what analysts and traders have to say about Bitcoins recent price action and what the future holds for this top-ranked digital asset.

$66,000 is needed to be considered support

The price of Bitcoin has risen rapidly over the last three weeks, pushing it back to Aprils major resistance level. This fact was highlighted by independent crypto analyst, “Rekt Capital.”

In mid-April 2021, #BTC rejected from the orange resistance area Today, $BTC is trying to retest this same area but this time as support#Crypto #Bitcoin
— Rekt Capital (@rektcapital) October 21, 2021

This time, the main difference is that bulls now attempt to establish this level of support as the new support zone. This will give BTC a solid foundation for further gains.

This has become a crucial price level in the short-term as the market enters the last week of October.

The bullish Q4 trend has been historically strong

Many in the space are pondering whether it is time to make profits or increase their position sizes after the breakout to an all-time high.

David Lifchitz is the managing partner at ExoAlpha and chief investment officer. He stated that everything was possible in crypto-land. He suggested that a steady uptrend could take BTC to $80,000 within a short time, or a slight pullback to $58,000 or $53,000, before moving higher towards $80,000 and beyond.

Historically speaking, it is likely that there would be a pullback after the torrid ride. Lifchitz highlighted the $64,500 level and the $58,000 level as key areas to watch for potential “lightening up positions” in case of a pullback. He also suggested that the $53K and $64,000 levels are key areas to monitor for the possibility of loading-up again in the $53K area if the pullback gets deeper.

Lifchitz stated that Bitcoin and the wider cryptocurrency market look positive as it enters its final quarter in 2021.

Lifchitz said:

“Historically, the 4th quarter was bullish. It favors an upside target for year-end. Overall bullish in the medium-term, but there may be some turbulence.”

Related: Bitcoin bulls to make $830M profit following Fridays expiry of BTC options

Bitcoin must have $62,000

The last perspective came from a pseudonymous Twitter user, E-Club Trading. He posted the following chart that shows the price action as well as important support and resistance areas.

BTC/USD 1-day chart. Source: Twitter

According to the analyst:

“A little profit taking in Bitcoin as it falls below its previous high of $65,000 The minimum holding price must be above $62,000 or we will retest $58,000 within the next few sessions. We are glad to be done for now.

The total cryptocurrency market is now worth $2.548 trillion, and Bitcoins dominance rate at 46.5%.

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