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Bitcoin has been on an impressive run since early September, rising 31% from local lows around $53,000. However, after testing the $69,500 supply level, the cryptocurrency is facing selling pressure. Despite this, Bitcoin remains strong and remains above the previous high of around $66,000, a crucial level that will determine its next move.
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Key data from CryptoQuant shows that despite recent bearish efforts, bears are losing control of the futures market. A key indicator has turned bullish for the first time since July, suggesting that the current selling pressure may not be enough to push Bitcoin lower.
Now that Bitcoin is in a critical phase, holding above the $66,000 level would be a sign of continued strength and maintenance of the uptrend for the coming weeks. Investors are watching it closely as Bitcoin’s ability to hold above this support could pave the way for new highs and further momentum in the bullish cycle.
Bitcoin taker buyers are starting to breathe
Crypto analyst Maartunn shared recent data from CryptoQuantshowing that Bitcoin buyers in the futures market have struggled to gain an advantage over sellers over the past year. Maartunn highlighted a chart showing that BTC nettaker volume has turned positive for the first time since July, indicating a possible shift in momentum.
The current trend change suggests that bears are starting to lose control of Bitcoin’s price action, with buyers starting to gain strength.
This data points to an accumulation phase, where Bitcoin’s price has been suppressed by large investors, preventing the company from posting significant gains or reaching new monthly lows. The fact that BTC has not set new lows despite previous bearish pressure reinforces the view that an accumulation period could be ending and a new bullish phase could be on the horizon.
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The coming weeks are crucial for Bitcoin, especially with the US presidential election approaching on November 5. Historically, elections introduce volatility and uncertainty to financial markets; this year is no exception.
Broader market trends are likely influencing Bitcoin’s price action, and traders are keeping a close eye on how BTC reacts to these developments. If Bitcoin maintains its upward momentum, there could be a rally to new highs in the weeks after the election.
BTC Testing Crucial Support
Bitcoin is currently trading at $66,400, following a healthy pullback from the recent high of $69,500. The price is now finding support at $66,000, which acted as a key resistance in late September and has since turned into a crucial demand zone for BTC. This support is essential for the bulls to maintain control as a position above $66,000 is a sign of strength and keeps the momentum alive for another attempt to break the $70,000 barrier.
If Bitcoin can hold steady above this support level, the next logical goal would be to challenge the $70,000 resistance, which has proven difficult to break. A successful push past this level would likely lead to further upside, potentially driving BTC to new price discoveries.
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However, if the price rises above $66,000, there could be a return to lower demand levels. In this case, the daily 200 moving average of $63,300 is the next key area where Bitcoin could find support before the uptrend resumes. The coming days will be crucial in determining whether BTC can maintain its bullish trajectory or if a deeper pullback is on the horizon.
Featured image of Dall-E, chart from TradingView
