Bitcoin price is down 6.5% from its recent local high, and market analysts expect BTC to bottom in the $65,000 to $69,000 range.
Bitcoin BTC$69,509 price has declined by more than 6% over the last three days after rallying above $73,000 at the beginning of the week.
Data from Coinbase shows that the BTC price fell from a high of $73,600 on Sept. 29, dropping as much as 6.55% to reach an intraday low of $68,777 on Nov. 1.
Bitcoin’s sell-off triggered by corrections across the broader crypto market and the growing uncertainty over the US elections has cast doubt over whether BTC’s “Uptober” gains will be undone.
This has left market participants wondering how low the Bitcoin price may go if the $69,000-$70,000 support range is lost.
Analysts set sub-$65,000 target for Bitcoin price
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.
“Let’s navigate this week with caution and keep our eyes on the prize!”
Fellow analyst Crypto Rover shared similar sentiments, saying that Bitcoin traders would be in a bad situation if Bitcoin lost the $69,000 level of support.
Founder of MN Capital Michael van de Poppe expects the Bitcoin price to dip into the lower end of the $64,000 to $65,000 range, adding that if this level does not hold, BTC can still retest the $60,000 level before continuing the rally.
“The final correction before the next surge toward $90-100K.”
At the same time, a lack of bid liquidity below the spot price keeps lower support levels in play. Data from trading resource Material Indicators warned of weak bid support, noting a lack of heavy concentration down to $69,000.
The nearest patch of significant bids still centered around $69,000 on the Binance BTC/USDT order book.
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.
The 20-day EMA sits within Bitcoin’s key support zone between $68,005 and $70,000. Bitcoin price lost 23% after this zone was lost, dropping to $53,550 on July 5.
More than 944,200 BTC were previously bought by more than 1.59 million addresses within this price range, according to IntoTheBlock.
Simply put, the $69,000 level has a good chance of becoming the new local low before the next leg up.
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