Bitcoin Eyes Crucial Support Levels as Price Rebounds from Ten-Day Lows After Major Retracement

Bitcoin (BTC) has rebounded from ten-day lows, establishing critical support levels that could dictate future price movements. Traders are keenly watching the key price points that have recently emerged in an evolving market landscape.

In an insightful update on October 24, Keith Alan, co-founder of trading resource Material Indicators, emphasized the importance of the $65,000 mark as a do-or-die level for Bitcoin.

“Let’s see if BTC can hold above that technical support through the weekly close,” Alan stated, highlighting the challenges ahead for bulls.

$65,000: The New Line in the Sand for BTC

Following a rapid ascent to $69,000, Bitcoin faced a retracement that led to a significant drop to $65,000—a level that represents its lowest point since October 10. This price action illustrates a volatile market where sellers momentarily regained control, forcing many positions to adjust.

Data from COINOTAG Markets Pro and TradingView revealed that a series of stop-loss orders were triggered, further amplifying the downward momentum. The pivotal level of $62,700, according to Alan, must remain intact without any “wicks below it” to maintain the ongoing uptrend.

From Old All-Time High to Current Support

This week’s dip came alarmingly close to Bitcoin’s previous all-time high, which was reached not in November 2021, but rather in April of that year at $64,950 on Bitstamp. The correlation with significant technical indicators, such as the 21-week simple moving average (SMA), is crucial.

With the current volatility in financial markets, Bitcoin must maintain strong levels of support to prevent further declines. Traders are now watching to see if a solid recovery above this threshold can be established.

Analysts Anticipate an All-Time High Retest

With the impending U.S. Presidential Election and upcoming Federal Reserve interest rate decision, Bitcoin’s trajectory may encounter additional volatility. The recent releases of key economic indicators, including the Purchasing Managers’ Index (PMI) and weekly jobless claims, could heavily influence market sentiment.

Material Indicators has cautioned that any significant downturn—specifically below $65,000—could invalidate recent bullish trading signals. In contrast, traders like CrypNuevo opine that recent sell-offs might create an opportunity for recovery.

Market Sentiment Shifts: From Fear to Recovery?

According to seasoned trader Michaël van de Poppe, the current market sentiment indicates that the worst may be behind for Bitcoin. He expressed optimism, stating, “I think that the correction is over as today’s macroeconomic season is kicking off…” He predicts a retest of all-time highs within the next month as market forces stabilize.

This bullish outlook reflects a broader sentiment in the crypto community, which often finds opportunity amid uncertainty. The potential for recovery and the reestablishment of support levels could pave the way for a renewed bullish phase.

Conclusion: BTC’s Future Remains Uncertain Yet Promising

As Bitcoin navigates through these volatile waters, maintaining the $65,000 level is critical for bulls seeking to establish a solid footing. Market analysts are closely monitoring pivotal economic data, support levels, and trader sentiment as the next few weeks unfold. With optimistic projections from industry experts, the potential for Bitcoin to challenge previous highs within weeks adds an intriguing layer to its evolving narrative.