Originally published on: October 09, 2024
Bitcoin, the leading cryptocurrency, surged to a high of $64,448 on Oct. 7 before experiencing a 4% decline in the markets. Currently hovering just above the 200-day EMA on the 4-hour chart, Bitcoin’s price is facing uncertainty.
A close below the 200-day EMA could signal a further correction and a retest of the $60,000 mark. While Bitcoin is now trading below $62,000, futures traders may view this as a potential opportunity for short selling.
The recent drop in Bitcoin’s price coincides with an increase in open interest (OI) and a positive funding rate. Spot traders are also selling, as evidenced by the drop in aggregated spot volumes on exchanges.
Analysts suggest that the current sentiment among futures traders is bearish, with perpetual buyers showing signs of “disbelief” amidst the price downtrend. The presence of a market fractal and a descending channel on the charts indicates a possible liquidity grab to the upside followed by a potential downturn towards the end of October.
Bitcoin is currently consolidating within a price range, with a break above $62,600 potentially signaling an uptrend. Reclaiming a position above the 50-day EMA level could further support a move above $64,000. However, resistance at $64,200 on the weekly chart suggests that Bitcoin may face challenges in the near term.
While the future of Bitcoin’s price remains uncertain, investors should conduct their own research and due diligence before making any investment decisions. Stay informed and subscribe to the Markets Outlook newsletter for more insights and analysis.
