Originally published on: October 24, 2024
Bitcoin is facing a crucial test as it struggles to hold two key support levels amidst fluctuating price action that saw it dip to ten-day lows. Keith Alan, co-founder of trading resource Material Indicators, highlighted an important resistance level dating back to April 2021 in his recent analysis.
After hitting a peak of $69,000, Bitcoin experienced a reversal this week, but sellers were unable to maintain control for long. As stop-loss orders triggered a brief acceleration in downside momentum following the Wall Street open on October 23, Bitcoin’s price dropped to $65,000, the lowest level since October 10. However, a rebound quickly pushed BTC/USD back above $67,000.
To avoid testing a critical weekly trend line, the 21-week simple moving average (SMA) currently at $62,700, bulls need to keep the price above this level without any significant dips below it. Failing to do so could signal a reversal in the short-term uptrend.
The recent price low for Bitcoin came close to its previous all-time high from April 2021, underscoring the importance of the 21-week MA as a key support level. Market analysts are closely monitoring the upcoming US Presidential Election, Federal Reserve interest rate decision, and macroeconomic data releases for potential impact on Bitcoin’s price volatility.
While some traders remain cautious, others like popular analyst Michaël van de Poppe are bullish, predicting a potential return to all-time highs for Bitcoin in the near future. As the market continues to navigate uncertainty, maintaining crucial support levels will be essential for Bitcoin’s price stability.
Please note that this article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research and analysis before making investment decisions.