After a great start to “Uptober,” Bitcoin (BTC) has recently seen significant volatility, retesting multiple crucial levels. As the price rebounds from the $110,000 level, some analysts have suggested that BTC’s rise will not resume until the key area is reclaimed.
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Bitcoin needs to recover the key to reach new highs
Over the past week, Bitcoin’s price has fluctuated between the lower and upper limits of its range, reaching a new all-time high (ATH) of $126,000 and a three-month low of $102,000.
Notably, the cryptocurrency market witnessed one of the largest liquidation events in history on Friday, causing the price of BTC to briefly fall below $107,500. The major cryptocurrency quickly rebounded from its lows and reclaimed the $110,000 barrier as support over the weekend, trying to reclaim the $116,000 level twice since Sunday.
Analyst Ted Pillows male Holding the crucial $110,000-$111,000 zone could pave the way for a bounce back to the top of its three-day range, but he warned that losing this zone could send the price to the $107,000 support level before reversing.
Likewise, Daan Crypto deals Highlight Despite the pullback, Bitcoin’s range between $107,500 and $124,000 has remained stable and key horizon levels have been respected, with “several pivots and big moves from these areas” occurring.
The trader noted that Bitcoin will likely continue to “chop” within the middle area of the range, where most of the price action has occurred since Q3, until it reclaims and retests $117,000 as support.
To achieve this recovery, analyst Rekt Capital He pointed out BTC should show continued stability around the $114,000 area as it has “historically preceded the uptrend to at least $117.3K.”
He noted that on previous occasions when the price closed daily above this level, Bitcoin was able to rise to at least $117,300, even if the bounce eventually led to further downward movement.
However, “for a bullish bias, it is important that $117.3K does not turn into resistance in this current move, and therefore BTC will need a daily close above $117.3K to continue towards $120K over time,” the analyst warned.
The overall structure of BTC shows strength
Rekt Capital highlighted that BTC has managed to maintain the overall bullish market structure, continuing to “post progressive higher lows despite the radical downside, which is a sign of continued strong aggressive buying behavior on price declines.”
He also noted that Bitcoin has consolidated within the $108,000-$116,000 levels in the monthly time frame, with the upside above the high range and the downside below the bottom of the range since July.
The analyst noted that bearish wicks could be a positive sign as they “indicate a liquidity grab at lower price levels that could add the fuel needed to attempt a breakout of the overall range.”
“In fact, Bitcoin has been trending upwards beyond the high $116,000 range repeatedly in recent months compared to the downside below the low $108,000 range, which is a testament to the low range’s role as a stable support for the higher time frame.”
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Rekt Capital added that a bearish wick below the lower band was inevitable, as the price has not seen such volatility in months. He concluded that holding the $114,000 support on the weekly time frame is the key level for a new challenge to the range highs.
As of this writing, Bitcoin is trading at $112,610, which is a 2.7% decline on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
The post Bitcoin ‘Uptober’ Rally On Pause Until This Level Is Reclaimed first appeared on Investorempires.com.
