Key Points
- Bitcoin’s recent price volatility has resulted in over $107 million in liquidations.
- The critical level of $60,600 is seen as determining Bitcoin’s future trajectory.
Bitcoin has experienced significant price fluctuations since the beginning of October. It has reached a high of $66,500 and a low of $58,800, the latter being less than a day old.
This plunge below $60k has greatly affected Bitcoin holders, leading to forceful liquidations exceeding $107 million.
Impact of Market Volatility
The increase in volatility, coupled with the current market conditions, has raised questions about Bitcoin’s future path. Notably, crypto analysts like Rekt Capital believe that Bitcoin must stay above $60,600 to have a potential upside.
RektCapital suggests that Bitcoin is retesting the weekly re-accumulation range of $60,600 as support for the second consecutive week. If Bitcoin closes above this level on the weekly charts, it could indicate an uptrend. However, if the cryptocurrency loses support here, it could lead to another downside deviation period.
Market Fundamentals
At the time of writing, Bitcoin was trading at $60,573, a 0.58% decrease on the daily charts. This bearish trend was extended by a 1.01% drop on the weekly charts. Such price action could be concerning as it indicates potential downside.
Bitcoin’s Large holders inflow has spiked over the past few days from 560.95 to 8.59k, indicating that investors are buying the dip and taking long positions. This is usually a sign of bullish market sentiment.
Furthermore, Bitcoin’s fund flow ratio rose from a low of 0.032 to 0.077, suggesting higher buying pressure. Bitcoin’s Exchange reserve has also been declining over the past month, indicating a long-term holding strategy. This is generally a bullish signal as it reduces supply on exchanges, decreasing potential selling pressure.
If the positive market sentiment continues, Bitcoin could reclaim the $61,875 resistance level. However, failure to maintain this level could see Bitcoin drop to $58,272.