- BTC bulls are targeting $64,000, seeing $68,000 as the next resistance level.
- Can they overcome four days of failed attempts to push BTC above this key target?
Bitcoin (BTC) bulls are targeting the $64,000 mark, a key level last reached during the late-August rally, making it a critical turning point.
To avoid repeating past declines, bulls must counter any downward pressure. If successful, the next resistance could materialize around $68,000.
Bitcoin: Bull Run Depends on $64,000
Source: Coinalyze
The current cycle closely resembles the trend in early August, with BTC surging to $64,000 after falling back below $55,000. However, the 18-day rally was then marked by uneven bearish pressure.
On the other hand, although this cycle shows more consistent green candles, the growth rate is less regular, causing volatility among stakeholders.
As a result, instead of rate cuts bolstering bullish sentiment, continued volatility has prevented BTC from retesting $64,000, currently trading at $63,543 – marking the fourth consecutive day below this benchmark.
Furthermore, this benchmark has been tested five times since March, when BTC reached its ATH of $73,000. It is worth noting that it was only in July that the bulls prevented a pullback, pushing BTC to $68,000.
Simply put, the $64,000 mark was a crucial turning point for Bitcoin.
While volume indicators point to a bullish trend, the real challenge is whether other investors will support a breakout or bears will once again block BTC’s ascent.
Current price may be out of reach
Over the past two days, BTC trading volume on CEXs has dropped from $17 billion to $6 billion. This sharp drop could amplify volatility, shaking investors’ confidence in a possible trend reversal.
The chart below could indicate a potential market top, often coinciding with reduced trading activity on CEXs.
Conversely, when trading volumes increase during sharp BTC declines, it often presents an ideal buying opportunity.
Source: CryptoQuant
According to AMBCrypto, the reduction in exchange activity could suggest two possibilities: either investors are taking advantage of the gains from the September cycle or they are waiting for a dip to buy BTC at a lower price.
If this trend continues, it could certainly pave the way for a resurgence of positions short circuit Bitcoin. Therefore, a chance of a breakout may be fading. However,
There may still be hope
As the most volatile month draws to a close, the potential for “Uptober” could signal a bullish turn for the market, a glimmer of hope illustrated in the chart below.
On the day Bitcoin saw a slight drop of 0.37%, the RPL ratio dropped, indicating losses. However, since then, the majority of transactions have taken place at a price higher than the initial acquisition price.
Source: BGeometrics
In addition to this analysis, significant transaction volumes have jumpedwith transactions exceeding $100,000 experiencing significant activity.
Clearly, the bulls are running into the resistance that has kept Bitcoin below the $64,000 benchmark. Currently, the sharp decline in CEX volume is reinforcing the dominance of short-stakes, acting as a barrier.
Read Bitcoin (BTC) Price Prediction for 2024-25
However, if the market stabilizes, as evidenced by sellers making profits, FOMO could prompt longer-term commitment.
Ultimately, it is essential to monitor CEX volume as well as speculative market activity. Their dominance could push BTC back below $60,000 if left unchecked.
