Bitcoin faces drop to $60K – Will the $64k support halt the sellers?

• Bitcoin flew previous October highs,
• A small value drop earlier than the uptrend resumes is the best end result for bulls.

Bitcoin [BTC] has a comfortably bullish outlook, judging by social media posts.

The speedy rise previous the $64k resistance stage that thwarted the bulls in October was damaged on October 14 and the channel highs had been examined once more.

Document inflows from Bitcoin spot ETFs possible contributed to this 5.1% value transfer. Nevertheless, the ETF share is simply a fraction of the full buying and selling quantity. Ought to traders brace for a breakout or one other rejection?

Channel heights versus vary breakout

Supply: BTC/USDT on TradingView

BTC traded inside a short-term vary in October that stretched from $60.2k to $64.1k. Monday’s each day buying and selling session simply beat resistance, however confronted resistance round $66.5k.

This coincided with the descending channel highs, in addition to the native highs of September 27. A session shut above $66.5k can be an indication of robust bullish conviction.

The OBV was unable to achieve the native highs and located itself a noticeable distance decrease, whereas the worth had the identical resistance at $66.5k.

This was an indication that purchasing quantity in current weeks was not as excessive as through the periods when BTC recorded losses.

A possible quick squeeze is looming

Supply: Mint glass

The one-month lookback interval confirmed a focus of liquidation ranges from $66.6k to $67.4k. The proximity of this liquidity pool may push costs larger earlier than a reversal in the direction of $60,000 happens.

Learn Bitcoin’s [BTC] Worth forecast 2024-25

It’s unclear whether or not Bitcoin is prepared for the bull run anticipated within the fourth quarter of 2024, or whether or not extra consolidation lies forward. Based mostly on the liquidation heatmap and the OBV, a rejection appeared possible.

A bullish response may comply with the previous vary highs of $64k and supply a shopping for alternative, however swing merchants ought to be ready for a deeper dip and handle their threat accordingly.

Disclaimer: The data introduced doesn’t represent monetary recommendation, funding recommendation, buying and selling recommendation or another type of recommendation and is solely the opinion of the author