Bitcoin Pullback May Signal Buy Opportunity at $62K for 20% Potential Gain to $74K: Analysis

An analysis has suggested that the recent Bitcoin pullback from $72,680 may indicate a further 16% decline, with a potential V-shaped recovery targeting $74,600.

Bitcoin experienced a notable downturn after encountering strong resistance in its attempt to surpass its all-time high. Earlier today, the cryptocurrency fell below the $69,000 mark, following a rally that peaked on Tuesday when BTC surged to $73,600.

This abrupt decline saw Bitcoin lose over $3,000 from its peak, though it has since regained some stability. Nevertheless, it remains significantly under the $71,000 threshold.

Previous BTC/USD Patterns

Amid this recovery, an analyst on TradingView provided detailed observations on the BTC/USD four-hour price chart, focusing solely on price action without technical indicators such as MACD or RSI. The analysis highlighted two recent V-shaped recovery patterns that occurred this year.

The September-October instance involved a high of $64,300, followed by a 17% pullback to a low of $54,146. This sequence culminated in a recovery to a new high of $66,114, marking a 23% gain from the low.

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Bitcoin 4 hour charts TradingViewBitcoin 4 hour charts TradingView
Bitcoin 4 hour charts TradingView

A similar pattern emerged in March when Bitcoin reached a high above $72K before a 16% pullback brought the price down to $61,919. Subsequently, Bitcoin recovered and reached a high of $72,520, representing a 19% gain from the low. This analysis provided the context for understanding the current market structure, where BTC set a high at $72,680 this week.

Current Analysis and Expected Recovery

In the current market structure, the analyst suggested that BTC is expected to pull back 16% from its recent high of $72,680, aligning with past V-shaped recovery trends. This leads to expectations of a potential low near $61,969.

According to the TradingView analysis, a price increase of 20% to 21% from this low could complete the anticipated V-shaped recovery, projecting a potential new high at or near $74,600.

The recommended strategy for bullish investors includes waiting for a pullback to the $62,000 range before entering a buy or hold trade, targeting a rise to approximately $74,000. This approach suggests potential gains of 20% on an unleveraged position with minimal risk involved.

Bitcoin Forecasts from Other Analysts

Market analyst Ali Martinez offered a separate perspective, emphasizing that Bitcoin’s current price movements aligned with his forecast. He noted that maintaining support at $69,000 would be crucial for further upward movement.

Last month, Martinez noted that if BTC held above $65,000, it could rise to $72,000, dip back to $69,000, and eventually aim for $78,000.

With Bitcoin currently testing the $69,000 level, maintaining this support and rebounding as predicted could signify a new phase in its price trajectory, potentially advancing toward the $78,000 target outlined by Martinez.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Source: https://thecryptobasic.com/2024/11/01/bitcoin-pullback-may-signal-buy-opportunity-at-62k-for-20-potential-gain-to-74k-analysis/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-pullback-may-signal-buy-opportunity-at-62k-for-20-potential-gain-to-74k-analysis