Bitcoin Drops 6.5% from Recent Highs: Analysts Predict Further Declines
Keywords: Bitcoin, cryptocurrency, Bitcoin price analysis, BTC market trends, Bitcoin support levels, Bitcoin technical analysis, US election impact on Bitcoin, FOMC meeting effect on cryptocurrency, Bitcoin volatility
Bitcoin’s Price Correction
Bitcoin has dropped 6.5% from its recent local high, with market analysts anticipating a potential low in the range of $65,000 to $69,000. Currently priced at $69,604, Bitcoin has declined over 6% in the past three days after initially surging above $73,000 earlier this week.
According to data from Cointelegraph Markets Pro and Coinbase, Bitcoin’s recent high of $73,600 on September 29 has now fallen to an intraday low of $68,777 on November 1, representing a 6.55% drop.
This sell-off has been attributed to corrections across the broader cryptocurrency market and increasing uncertainty surrounding the upcoming U.S. elections. This has raised doubts about whether Bitcoin’s “Uptober” gains might be reversed, leaving traders wondering if Bitcoin could fall further if the $69,000 to $70,000 support range is breached.
Analysts Set Bitcoin Price Target Below $65,000
The recent downtrend has led some market analysts to believe that Bitcoin could retest the $65,000 level before resuming any upward momentum.
“Expect Bitcoin Volatility in the Coming Days!” said Bitcoin analyst AlphaBTC in an October 31 post on X (formerly Twitter). He highlighted that the upcoming U.S. elections in 2024 and the Federal Open Market Committee (FOMC) meeting on November 6 and 7 could result in significant market volatility.
According to AlphaBTC, traders may have to wait until after the election results and the FOMC’s interest rate decision to gain a clearer sense of market direction. He suggested that Bitcoin might retest its 2021 all-time high of $69,000 before pushing towards new record highs. The chart below also suggests a deeper decline to below $65,000 if the $69,000 and $67,222 support levels fail.
Market Sentiment and Analyst Opinions
A similar perspective was shared by Crypto Rover, who indicated that Bitcoin traders could face challenging conditions if Bitcoin loses the critical $69,000 support level.
MN Capital founder Michael van de Poppe expects Bitcoin to drop to the lower end of the $64,000 to $65,000 range. He added that if this level does not hold, Bitcoin could further decline to the $60,000 range before continuing its upward trend.
The Final Correction Before a Rally Towards $90,000 – $100,000?
Meanwhile, the lack of liquidity demand below the spot price is maintaining the lower support levels. According to data from Trading Materials Indicators, there is weak demand support around the $69,000 level, indicating a potential lack of buying interest at this price range. The Binance BTC/USDT order book currently shows significant bids clustered around $69,000.
Technical Analysis: The 20-day EMA as Key Support
On the technical side, Bitcoin is positioned within a support zone between $69,000 and $70,000. Losing this support could lead Bitcoin to seek demand liquidity at the 20-day EMA (Exponential Moving Average), currently set at $68,082.
The 20-day EMA lies within Bitcoin’s key support zone, which spans from $68,005 to $70,000. Previously, Bitcoin experienced a 23% drop after falling below this range, reaching $53,550 on July 5.
Data from IntoTheBlock reveals that over 944,200 BTC was acquired by 1.59 million addresses within this price range, suggesting significant investment interest at this level.
Conclusion
With Bitcoin’s price volatility heightened by both macro-economic events and technical indicators, the next few days may be pivotal. Analysts are closely watching the support levels between $69,000 and $70,000 and expect significant price movements, either towards a renewed rally or further declines if key support levels break.
