A loss of new support could send bitcoin to lows not seen in seven months.
Low volatility is expected for the price, according to trader Miles Deutscher.
The price of bitcoin (BTC) has returned to around $63,000 (USD) today. This shows a change in the trend experienced during the week.
Precisely, the currency fell yesterday to USD 59,000 after seeing increasingly lower minimums during the week. And, from there, experienced an upward rebound, breaking the corrective streakjust as he did at the beginning of October.
“The critical level of $59,000 held and we have seen a decent reaction,” comment analyst Miles Deutscher. This comment takes place after the previous day he said that, in case of losing such a price zone, USD 52,000 became a real possibility.
The analyst’s observation is due to the fact that the price of bitcoin has experienced lower lows and highs since the all-time high it registered seven months ago. Although, this bearish trend was broken when it recorded higher levels in late September than in August.
Since then, USD 59,000 has functioned as support for the currencywith a test in the first week of October and another in the second. In this sense, according to the technical analysis of charts, it is crucial that the market sustains this area so as not to continue the downward trend.
Otherwise, USD 52,000, a level not seen since February, is put on the table, given that it would continue with the line of lower minimums. This can be seen in the graph.
The macroeconomic and geopolitical environment is impacting bitcoin
The recent drop to the critical level has occurred after the publication of the higher-than-expected inflation report in the United States. And the previous one occurred after the escalation of war between Israel and Iran, which discouraged the demand for risk. Therefore, they may be due to temporary volatility scenarios, as reported by CriptoNoticias.
“There will probably be no major moves this weekend (aside from meme trading), as the direction is not entirely clear yet,” Deutscher opined. While bitcoin shows slight strength, memecoins have gained momentum, primarily First Neiro on Ethereum (NEIRO) due to whale activity.
The analyst warns that bitcoin still needs a higher high to officially break the downtrend structure.
On the other hand, trader Michaël van de Poppe manifested his optimism about the cryptocurrency markets given the liquidity that bitcoin took at USD 59,000. With the quick reversal from such a level, consider that the crucial area now is for the price to sustain above $62,500.
«The next test is USD 65,000», points out the trader, since this area has functioned as resistance last month. Therefore, this is a key level to overcome to set higher highs.
