Bitcoin analyst sees $66K ‘local bottom’ as BTC price hits $200M
Bitcoin (BTC) faces a “deeper pullback” after weekend price weakness cost BTC $200 million.
In his latest market analysis on X, the legendary trading titan of crypto warned of a deeper correction in BTC/USD.
Daily timeframe BTC price war rages
After rejecting the high of $73,800 earlier this week, Bitcoin continues to struggle.
Market nerves over the upcoming US presidential election have already overheated the Bitcoin trading environment, with open interest reaching record highs.
Now, observers see the risk of further BTC price rebound before the growth resumes.
“Before the local bottom at $66,200?” Titan of Crypto asked.
The accompanying chart showed Ichimoku cloud data for 1-day timeframes, with the price below one of the indicator's key trend lines, the Tenkan-Sen.
“BTC failed to close above the Tenkan, suggesting a deeper pullback may be in the offing,” he continued.
“If the breakout is confirmed, we could see a retest of the JPY around $66,200, which could signal an area low.”
BTC/USDT 1-day chart with Ichimoku cloud data. Source: Titan of Crypto/X
Previously, the titan of crypto designated $71,300 as an important resistance level to support while probing Ichimoku on monthly timeframes.
Bitcoin traders line up bound zones
Bitcoin, meanwhile, shed $200 million of long positions to current levels, including a short fall below $68,000.
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Data from Cointelegraph Markets Pro and TradingView indicate that only a modest rebound will occur thereafter, leading to further bearish forecasts for BTC price.
BTC/USD 1-Hour Chart. Source: TradingView
Prominent trader Credible Crypto called the $65,000 to $69,000 area a “must zone,” reiterating that the rally to the week's all-time highs could remain inverted.
“For now, we'll see if we get this bounce and take it from there,” he warned of a “big correction” on Nov. 3.
Source: Superbro
Others had more faith in a market reversal.
“Bitcoin has a pullback to the Fibonacci 0.618 level, which is a common support for a healthy rebound,” said another trader Alan Tardigrade.
“If this level holds $BTC, there will be other trigger moves.”
BTC/USD chart with Fibonacci levels. Source: Alan Tardigrade/X
Market sources agreed on concerns about high volatility in election week, which will also host the Federal Reserve's next decision on interest rates.
“Despite Bitcoin's dip below $69,000 on Friday, we continue to see strong demand in the market, with OI for both BTC futures and BTC options rising to $40.65b and $25.3b respectively (+24.20% and +36.76% increases (compared to) until the beginning of October),” trading company QCP Capital reported in part in a recent announcement to Telegram channel subscribers.
“In the options market, BTC is trading at a 7-day implied vol of 74.4%, which is higher than the previous 7-day vol of 41.4%, indicating a high risk premium around the options.”
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
