• BTC’s recent volatility leads to $107 million in total liquidations

  • Analysts see $60,600 as a key level to determine BTC’s trajectory

Bitcoin’s price volatility has increased since the beginning of October. During this period, BTC hit a high of $66,500 and a low of $58,800, the latter being a price level reached less than 24 hours ago.

The drop below $60 had a huge impact on BTC holders, with many being forcibly liquidated. In fact, over $107 million has been liquidated.

This rise in volatility, coupled with current market conditions, raises questions about BTC’s future trajectory. This is why popular crypto analysts such as Rekt Capital suggest that BTC must remain above $60,600 for potential upside.

What does market sentiment say?

In his analysis, RektCapital posits that Bitcoin is retesting the $60,600 weekly re-accumulation range as support for the second consecutive week.

According to this analysis, if BTC closes above this level on the weekly chart, it will register an uptrend. Therefore, for any potential upside in the near term, BTC must hold this range, which will set the price up for further gains.

However, the analyst also noted that if the cryptocurrency loses support here, it will note another period of downside deviation.

What does the chart say?

At the time of writing, BTC is trading at $60,573. This marks a 0.58% drop on the daily chart and a 1.01% drop on the weekly chart, continuing this bearish trend.

Therefore, based on the latest price action, the above analysis by RektCapital could be concerning as it predicts potential downside.

Therefore, it is imperative to determine what other market fundamentals suggest.

First, Bitcoin’s large holder inflows have surged from 560.95 to 8.59k in the past few days. The surge in large holders means that investors are buying the dips and taking long positions.

Such market behavior also suggests that large holders expect prices to rise in the near future.

Additionally, Bitcoin’s fund-to-flow ratio surged to 0.077 from a low of 0.032, indicating higher buying pressure as investors deposit funds to purchase BTC.

This behavior is often associated with bullish market sentiment.

Finally, Bitcoin’s exchange reserves have also seen a consistent decline over the past month. This suggests a long-term holding strategy as investors are unlikely to sell their BTC in the short term. Mostly, this is a bullish sign as it reduces the supply on exchanges, reducing potential selling pressure.

In short, the recent downtrend has been losing steam, and BTC could be well-positioned for further gains. If the positive market sentiment continues, BTC will reclaim the $61,875 resistance level. Failure to sustain this level would see Bitcoin fall to $58,272.



It should be emphasized that this article is for reference only and does not constitute investment advice.


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