Bitcoin should hold this level in 2021 when traders see the BTC price decline ‘over’

BTC's price action has two new key levels to keep Bitcoin as support as it bounces back from 10-day lows.

In his latest X cover published on October 24, Keith Allan, founder of trading resources Material Indicators, drew attention to an old high from April 2021.

$65,000 would be the do-or-die BTC price level.

After reaching $69,000 for the first time since the summer, Bitcoin (BTC) bounced back this week, but the sellers did not have control for long.

As stop-loss levels began to hit, the pace of declines briefly accelerated after Wall Street opened on Oct. 23, data from Cointelegraph Markets Pro and TradingView showed.

The result was a trip to $65,000, marking Bitcoin's lowest level since October 10. The subsequent rebound took BTC/USD above $67,000.

By doing so, bulls avoid testing a crucial weekly trend line – the 21-week simple moving average (SMA).

Currently at $62,700, that level should remain intact “with no wicks below it,” which would, in turn, be a “sign of short-term upside.”

While this week's BTC price was low, it came within inches of the previous all-time high from the previous cycle – not from November 2021, but April of the same year, reaching $64,950 on Bitstamp.

“Thursday brought us a mid-cycle high test, and it's now closely tied to the 21-week MA,” Allen said.

“Let's see if BTC can hold above that technical support at the weekly close.”

The accompanying chart lays out interest zones and trading signals with one of the material indicators' proprietary trading tools.

Analyst sees Bitcoin's top test in “2-4 weeks”.

As Cointelegraph reports, risk-asset markets, including crypto, continue to expect volatility due to the US presidential election and the Federal Reserve's interest rate decision in two weeks.

RELATED: Bitcoin ETF $79M Outflow Ends 2-Week Bull Run ‘Toward' BTC Price

Prior to that, US macroeconomic data releases will add to the uncertainty, with the October 24 Purchasing Managers' Index (PMI) and weekly unemployment claims.

Material Indicators about the data's potential BTC price impact: “Warm jobless report could cause change.”

He added that the latest bullish trade mark would be “broken” if the price of BTC returns below $65,000.

Other market participants were convinced that the worst was over.

“Stop losses and liquidations, we're down a bit because of the slippage,” trader CrypNuevo told X followers.

I think the worst case scenario for LTF to fill the wick created today will be a W bottom. I think we're more at fault when the support comes back, but we're good.

Crypto trader, analyst and entrepreneur Michael Van de Pop went further, predicting that the next month will match all-time highs for Bitcoin.

The latest part of X's post is “The Sinking Happened to Bitcoin”.

“I think the correction is over as today's macroeconomic season begins with PMI data. Looking forward to seeing the ATH test in the next 2-4 weeks.

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.