Bitcoin Rises to $67,000, but a Price Correction May Be Imminent

Bitcoin [BTC] is bullish, according to social media posts.

Azcnews Bitcoin Rises To $67,000, But A Price Correction May Be Imminent

A strong breakout above the $64k resistance level that had stalled bulls’ gains in October occurred on October 14, and channel highs were retested.

Record inflows into Bitcoin spot ETFs may have contributed to the 5.1% price increase. However, ETFs only account for a small portion of total trading volume. Should investors prepare for a strong breakout or another rejection?

Channel Tops vs Range Breakout

Bitcoin Analytics
Bitcoin Analytics

In October, BTC traded in a short-term range between $60.2k and $64.1k. Monday’s session saw BTC easily break above the resistance level, but it faced pressure at $66.5k.

This level coincides with the top of the descending channel, which is also the local top from September 27. If the session closes above $66.5k, it will be a sign of a strong bullish momentum.

The OBV (On-Balance Volume) indicator failed to break above the local tops and remains significantly lower, while the price hits the same resistance at $66.5k.

This is a sign that the buying volume in recent weeks is not as high as the sessions where BTC recorded a decline.

Short-term liquidation risk is approaching

Bitcoin Liquidation Heatmap
Bitcoin Liquidation Heatmap

The observation period over the past month shows that the concentration of liquidations is between $66.6k and $67.4k. The nearby liquidity zone could attract the price to move higher before reversing to $60k.

It is unclear whether Bitcoin is ready for the expected growth in Q4 2024, or if it needs more time to accumulate. Based on the liquidation heatmap and OBV, the probability of rejection is high.

A bullish reaction could occur at the old range high of $64k and provide a buying opportunity, but swing traders need to be ready for a deeper correction and manage risk carefully.

(2 votes)

5.0/5

(2 votes)

Latest

Crypto Market Surpasses $4 Trillion, Overtakes Microsoft Amid Policy Boost

News | Altcoin | Bitcoin | Editor Choice

Crypto Market Surpasses $4 Trillion, Overtakes Microsoft Amid Policy Boost

The cryptocurrency market has surpassed $4 trillion in market capitalization for the first time, overtaking Microsoft, driven by supportive U.S. policies and a surge in investments from both individuals and institutions.

Xrp Explodes, Whale Moves Spark Bullish Momentum

News | Altcoin | Editor Choice

XRP Explodes, Whale Moves Spark Bullish Momentum

XRP’s open interest has surged by over 18%, accompanied by a spike in derivatives volume and a golden cross in the MVRV ratio, fueling investor expectations of a major upcoming price breakout.

Xrp Reaches New Peak After 7 Years Of Waiting

Altcoin | Editor Choice

XRP Reaches New Peak After 7 Years of Waiting

This morning, Ripple (XRP) officially reached a new peak at $3.60, becoming the third-largest cryptocurrency in the market.

Donald Trump Plans To Allow Pension Funds To Invest In Crypto

Policy & Regulations | Editor Choice

Donald Trump Plans to Allow Pension Funds to Invest in Crypto

U.S. President Donald Trump aims for pension funds in the country to allocate capital into assets such as gold, private securities, and especially cryptocurrencies.

Wintermute Reports No More Eth Available For Sale Via Otc

Altcoin | Editor Choice

Wintermute Reports No More ETH Available for Sale via OTC

Wintermute has reported that the amount of ETH sold through OTC has run out, indicating impressive buying activity from institutions targeting Ethereum.