Bitcoin’s latest downtrend has led market analysts to believe that the price of the pioneer cryptocurrency might retest areas around $65,000 before resuming the uptrend into price discovery.
“Expect Bitcoin volatility in the coming days!” said Bitcoin analyst AlphaBTC in an Oct. 31 post on X.
The upcoming 2024 US elections and the looming Federal Open Market Committee (FOMC) meeting scheduled for Nov. 6 and Nov. 7 could result in “big swings,” the analyst added.
Traders would have to wait until after the outcome of the elections and the FOMC decision on rate cuts is made to get clarity on the direction the market could take, according to AlphaBTC.
Bitcoin could retest the 2021 all-time high of $69,000 before resuming its trend to new all-time highs, the analyst argues. The chart below also shows a possibility of a deeper drop in areas below $65,000 if the support at $69,000 and $67,222 does not hold.
20-day EMA will be a test for Bitcoin
From a technical point of view, Bitcoin’s price is at the support zone between $69,000 and $70,000.
Losing this support could see BTC price collect demand-side liquidity down toward the 20-day EMA, currently at $68,082.