FX.co ★ #Bitcoin chart analysis

Bitcoin’s Volatile Week: Price Pullback Signals Potential for Deeper Correction Bitcoin's price has experienced a steep pullback over the past three days, shedding more than 6% after briefly crossing $73,000 earlier in the week. According to Cointelegraph Markets Pro and Coinbase, BTC hit a high of $73,600 on September 29, then fell 6.55% to reach an intraday low of $68,777 by November 1. This recent price slide, set off by broader crypto market corrections and growing unease over the approaching U.S. elections, has clouded Bitcoin’s traditional “Uptober” rally. Traders are now watching closely to see if Bitcoin’s price will sustain the critical support range of $69,000-$68,006, with many analysts eyeing sub-$65,000 levels should this support fail. Key Levels to Watch The current downtrend suggests Bitcoin may retest levels near $65,000 before a sustained uptrend can resume. Analyst AlphaBTC anticipates further volatility as both the U.S. elections and the Federal Open Market Committee (FOMC) meeting, scheduled for November 6 and 7, could trigger notable market swings. Decisions stemming from these events, including potential rate cuts, are expected to impact Bitcoin’s direction and the broader market sentiment. Support Zone Under Pressure On the technical side, Bitcoin’s daily chart shows the price at a critical support zone between $68,006 and $70,000. A pivotal level around $68,033 combines confluence support from the 25-day Exponential Moving Average (EMA) and a key uptrend line, suggesting a potential ascending wedge pattern that could signal further upside if the level holds. However, if BTC loses ground at this support, the price may continue to drop, potentially triggering demand-side liquidity down toward the 25-day EMA and the uptrend line. Bullish Momentum Weakening On the daily chart, signs of bullish exhaustion have surfaced as Bitcoin continued its Friday decline. A daily close below the $69,700 mark could set off an additional 5% drop, pushing the price toward the next support at $66,000, which aligns with the breakout point of a downward-sloping parallel channel pattern visible on the weekly chart near $65,800. Momentum indicators reflect the waning bullish strength. The Relative Strength Index (RSI) on the daily chart, which previously reached an overbought level of 70 on Tuesday, has since dropped sharply to 57.25. This shift underscores a considerable drop in buying pressure, with the RSI falling out of overbought territory, issuing a cautionary sell signal.

Outlook Bitcoin’s trajectory remains unclear, as the upcoming FOMC meeting and election results could further shape investor sentiment. If Bitcoin manages to maintain the current support zone, it could revive its bullish trend. However, a break below $69,700 may signal a deeper correction, possibly extending toward the $66,000 range as analysts watch for Bitcoin’s next move.