Bitcoin experienced a 3% decline, dipping below $67,000 due to expected US sell pressure. Traders anticipate further pullbacks, with potential support around $66,000 and $62,000. Analysis suggests Bitcoin must close above $69,000 to sustain bullish momentum towards historic highs.

On October 21, Bitcoin (BTC) experienced a 3% decline, dropping below the $67,000 threshold as the New York Stock Exchange opened, attributed largely to anticipated sell pressure from the United States. Data from Cointelegraph Markets Pro and TradingView indicated that this dip followed BTC’s highest weekly close in five months, prompting market analysts to expect consolidation and support tests in the near term. Popular trader Jelle remarked on social media, stating that the market drop was anticipated and did not pose a significant concern, describing the weekly chart as “primed.” He emphasized that further pullbacks in Bitcoin’s price could occur, with accounts like Emperor suggesting the possibility of revisiting the $62,000 mark. Emperor pointed out that key technical indicators, such as the 6-hour 55-day exponential moving average (EMA) and significant volume levels between $66,000-$65,000, should serve as areas to monitor for potential support as traders may take profits in this range. Analyst Josh Rafer elaborated on the significance of past trends, suggesting that despite trends often having a self-fulfilling nature, the mid and lower ranges of these trends historically provided substantial support levels for Bitcoin. Rafer expressed interest in a potential re-test of these levels before moves upward. Well-known commentator WhalePanda articulated frustration over continual selling by US entities after Bitcoin neared the $69,000 mark, questioning the source of their Bitcoin. Some analysts noted that BTC/USD was approaching significant bid-side liquidity as buyers began to show interest closer to the $66,000 level. Monitoring resource CoinGlass reported that Bitcoin was undergoing what some referred to as a “flash sale” on Binance, the world’s largest cryptocurrency exchange. Co-founder Keith Alan emphasized the critical importance of Bitcoin closing above the $69,000 mark in order for bullish trends to re-establish themselves and challenge previous all-time highs set in March. He cautioned that while significant ask liquidity was positioned above $70,000, historical resistance from the 2021 peak must not be overlooked. He added, “I do not expect a sustainable run to ATH territory without full candles printing above $69K.”

The cryptocurrency market is highly volatile, with Bitcoin being the most prominent asset. Price fluctuations can occur due to various factors including market sentiment, trading volume, and external economic pressures. Recent market behavior has included substantial sell-offs, particularly by US traders, as expectations shift regarding potential upward movement in price. This particular instance highlights the technical analysis often employed by traders to predict price movements and identify support and resistance levels based on historical data and market indicators. As Bitcoin approaches critical psychological price levels, analysts closely monitor shifts in market dynamics and liquidity conditions which can greatly influence trading strategies.

In summary, Bitcoin’s recent decline reflects expected sell pressure from the US trading sector, as it attempts to stabilize after reaching significant interim highs. Market analysts are closely monitoring key resistance levels and potential areas of support around $66,000 and $62,000, which will be crucial for future price movements. The consensus indicates that for bullish momentum to regain strength, BTC must close consistently above the $69,000 mark to create a foundation for challenge against previous all-time highs. Traders remain vigilant as they speculate the next movements in this dynamic market environment.

Original Source: cointelegraph.com

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