Highlights:
- Bitcoin price is currently edging higher towards the $61,709
- A rally through $61,709 could open the way for a rally to $63k or higher
- Momentum likely to be driven by increased whale buying
Bitcoin is facing a pullback today, with its price declining by 2.14% in the last 24 hours. At the time of writing, the leading cryptocurrency was trading at $60,885.80. While the price correction may cause concern among traders, Bitcoin’s technical chart indicates that a potential rebound could be on the horizon. This is thanks to its recent performance and strong support levels.
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Support at $60,367 Holds the Key to Bitcoin’s Rebound
Bitcoin’s price has experienced fluctuations throughout the week, but it has established a significant support level at $60,367. This level has held firm despite the recent correction, suggesting that Bitcoin still has the foundation to recover. Since hitting this support, the cryptocurrency has been inching higher, although trading volumes remain relatively low.
Bitcoin must break through a critical resistance level at $61,709 to confirm an uptrend. If this resistance is breached, it would signal that bullish momentum is taking hold, potentially pushing the price higher to $62,283 in the short term. However, failure to break through this level could cause Bitcoin to oscillate between its current price levels or even correct itself further if bears seize control of the market.
What Happens If the Support Breaks?
Despite the bullish potential, traders should keep an eye on the downside risks. If bears overpower buyers and push Bitcoin below the crucial $60,367 support, it could lead to a more pronounced correction, potentially driving prices below the $60,000 mark. Such a scenario would be concerning for short-term traders. However, it might present buying opportunities for long-term holders looking to accumulate Bitcoin at lower prices.
Among these two scenarios, the odds seem tilted in favor of a test and potential breach of the $61,709 resistance. Several factors support this possibility, including rising buying volumes and positive market sentiment.
Buying Volumes Point to Bullish Momentum
One of the most telling indicators of Bitcoin’s short-term trajectory is the rise in buying volumes. Although trading has been subdued during the current price rebound, activity is picking up as Bitcoin approaches key resistance levels. This increase in buying activity signals growing confidence among investors that Bitcoin’s support at $60,367 will hold firm, providing the foundation for a new upward push.
Evidence of this trend is seen in major cryptocurrency exchanges. On October 9, for instance, a large Bitcoin buy order of $46 million was executed on Binance, demonstrating that deep-pocketed investors are positioning themselves for a possible upward move.
Someone just bought another $46 million in #Bitcoin 🚀 pic.twitter.com/6i6Eix7Dvp
— MOHON1💘💘 SHANTA (@MOHON1SHANTA1) October 9, 2024
Sentiment Remains Strong Among Investors
Aside from technical indicators, market sentiment continues to show optimism toward Bitcoin. According to CoinMarketCap community sentiment tracker, approximately 65% of investors are bullish on Bitcoin. This indicates that many market participants anticipate a continuation of the broader uptrend that has defined Bitcoin’s performance in recent months.
This bullish sentiment, combined with rising buying volumes, suggests that Bitcoin’s price could soon challenge its key resistance at $61,709. If this level is broken, the path to $62,283, and potentially higher, could be within reach.
The Broader Market Context: What’s Driving Bitcoin?
Bitcoin’s price movements are often influenced by broader market factors, including macroeconomic trends and developments in the cryptocurrency space. While the current correction could be attributed to a natural cooling-off period after Bitcoin’s recent rally, there are other factors at play that investors should consider.
The overall sentiment in the cryptocurrency market remains cautiously optimistic, with investors paying close attention to regulatory developments and institutional adoption. Bitcoin’s role as a hedge against inflation continues to attract interest, especially amid concerns about rising global inflation rates. At the same time, the cryptocurrency’s limited supply and growing acceptance as a store of value provide long-term support for its price.
Additionally, Bitcoin’s correlation with traditional financial markets remains an important factor to watch. Recent stock market volatility, driven by uncertainties surrounding politics in the Middle East, could impact Bitcoin’s short-term movements.
A Recap on Bitcoin Price
Bitcoin’s minor correction in the last 24 hours has seen it establish strong support at $60,367. With strong support at $60,367 and rising buying volumes, the odds favor a retest of the $61,709 resistance. If this resistance is broken, Bitcoin could quickly climb toward $62,283.
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