One condition Bitcoin must meet or ‘bears can creep back into the picture’ 
Cryptocurrency Oct 22, 2024 Share
Bitcoin’s (BTC) path toward $70,000 has seemingly stalled, with analysts identifying conditions the digital asset must meet or risk witnessing dominance by bears.
The asset is undergoing a short-term correction and faces a crucial technical test as it trades close to a major resistance zone formed by its all-time high trendline following a period of volatility and consolidation, according to an analysis by TrendSpider on October 22.
Bitcoin price analysis chart. Source: TrendSpider
The analysts agreed that Bitcoin’s path from the current levels is straightforward, where the asset must convert this long-standing resistance zone of $70,000 into a support level.
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Notably, Bitcoin has faced multiple rejection points along this trendline since March 2024, with the price repeatedly falling after testing this level. Should Bitcoin break and stabilize above the trendline, it would be a notable bullish signal, opening room for higher targets.
On the other hand, if Bitcoin fails to breach the $70,000 mark, bears might capitalize, possibly pushing the price lower. Indeed, $70,000 is primarily considered the first key point that could push BTC toward $100,000.
“Pretty straightforward setup here on $BTC. Turn all-time high trend zone resistance into new support, or bears can creep back into the picture,” TrendSpider noted.
Bitcoin facing short-term correction
This outlook comes as Bitcoin bulls attempt to keep the valuation above $65,000 support after the asset failed to hold above $69,000.
In the context of this recent correction, analysis by pseudonymous X user MirageMogul noted that Bitcoin faces the potential for a further drop after it tested the resistance line at around $68,000 but failed to sustain momentum.
Bitcoin price analysis chart. Source: TradingView
This opens the door for further downside movement as chances of a possible ‘Uptober’ rally appear to be fading.
Interestingly, a large volume of long liquidations is under $62,000. This cluster of liquidations could increase the chances of further selling pressure soon.
The concerns regarding possible sustained losses are further highlighted by the fact that futures open interest has hit an all-time high of above $40 billion. In this case, the metric signals potential volatility ahead as it highlights more active engagement from traders.
Bitcoin’s long-term price outlook
Meanwhile, the prospects for a long-term Bitcoin price rally remain intact. Another analyst on X, with the pseudonym El_crypto_prof, observed that the maiden crypto has broken out of a falling channel that has persisted for over seven months, signaling potential bullish momentum ahead.
This breakout has drawn comparisons to the pattern seen in 2020, just before Bitcoin began its parabolic rise.
Bitcoin price analysis chart. Source: TradingView
He noted that with the potential breakout, some bears may hope that Bitcoin is simply retesting previous resistance levels. However, history suggests this could be the calm before a major upward move, similar to how Bitcoin performed after the COVID-19 crash in 2020.
At the same time, Bitcoin faces several vital catalysts, such as the upcoming United States presidential election. There is anticipation that a potential Donald Trump win will send Bitcoin higher. This aspect is reflected in the betting odds market, where Bitcoin’s valuation surge coincides with the chances of a possible Trump win.
Bitcoin price analysis
As of press time, Bitcoin was trading at $67,090, a drop of almost 2% in the past 24 hours. The weekly chart shows gains of over 1%.
Bitcoin seven-day price chart. Source: Finbold
With all factors considered, Bitcoin is at a critical juncture where bulls must sustain the valuation above the $65,000 support level to keep hopes of reaching $70,000 alive.