Bitcoin Experiences Fifth Consecutive Rejection at $72,000 Resistance Level
Ahead of its monthly close, Bitcoin (BTC) has made another unsuccessful attempt to establish the $72,000 resistance as a support level. Despite this decline, some analysts believe the cryptocurrency remains poised for a potential breakout, with new levels to monitor.
BTC’s Sweet 16 Party Turns Spooky
Bitcoin, the largest cryptocurrency by market capitalization, experienced a rally in October, increasing approximately 13% over the past 30 days. BTC's price rose from a monthly low of $58,900 to nearly its all-time high (ATH) of $73,737, reaching $73,300 on Wednesday.
Following a positive September close, Bitcoin is set for its best monthly close since March, potentially achieving returns of around 13% to 14% despite recent price fluctuations.
On the 16th anniversary of its whitepaper, Bitcoin saw a 2% drop, affecting the broader market negatively. BTC's price fell below $71,000, hitting an intraday low of $70,600. Ethereum (ETH), the second-largest cryptocurrency, declined about 5.1%, losing the $2,600 support zone.
Crypto analyst Ali Martinez noted that today marks the fifth consecutive rejection BTC faces at $72,000. Since its ATH, Bitcoin has been rejected from this resistance level five times, with prior drops ranging from 8.2% to 18%.
Analyst Altcoin Sherpa suggested that BTC might experience a 4% to 5% dip if it does not maintain the $70,000 support zone. However, he anticipates a possible bounce from the $70,800-$71,400 range in the short term.
BTC is expected to experience significant volatility leading up to the US presidential elections. Bitfinex analysts predicted that Bitcoin's volatility will peak between November 6 and November 8 due to speculation surrounding the election outcome.
Is Bitcoin Gearing Up For End-Of-Year Breakout?
Cryptoinsightuk commented on Bitcoin’s performance, indicating that BTC remains at an ATH in Open Interest (OI). The investor noted that the Daily Relative Strength Index (RSI) could turn bearish today.
He emphasized that $69,600 should serve as a key support level for Bitcoin bulls but cautioned that falling below $66,500 could lead to significant declines as BTC's open interest would decrease.
In contrast, analyst Crypto Kaleo expressed a more optimistic view on BTC’s price action, referencing that Bitcoin did not surpass its ATH when it retested the $20,000 mark in 2020.
Instead, Bitcoin initially dropped nearly 20% during Thanksgiving, moving from $19,400 to $16,100 and consolidating within that range for 30 days before breaking out again in late December 2020.
The analyst pointed out that a breakout occurred 219 days after May 2020’s Halving. With Bitcoin currently 194 days post-halving, he believes that a minor pullback is not concerning.
As of this writing, Bitcoin is holding the $70,000 support level, trading at $70,522.
