Bitcoin at a Critical Juncture: Bulls Must Maintain Support to Avoid Bearish Trends

Bitcoin at a Crossroads

Bitcoin's (BTC) path toward $70,000 has seemingly stalled, with analysts identifying conditions the digital asset must meet or risk witnessing the dominance of bearish trends.

Current Price Analysis

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.

• Key Condition: Convert the long-standing resistance zone of $70,000 into a support level.
• Pivotal Position: Bitcoin has faced multiple rejection points since March 2024.
• Potential Bullish Signal: A breakout above the trendline could signal higher targets.

Short-Term Correction

This outlook follows Bitcoin bulls' attempts to keep the valuation above the $65,000 support after the asset's struggle to maintain above $69,000.

• Volatility Ahead: Futures open interest has reached an all-time high above $40 billion.
• Liquidation Risks: A large volume of long liquidations is under $62,000, increasing selling pressure.

Long-Term Prospects

The long-term outlook remains bullish despite the current instability. An analyst pointed out that Bitcoin has broken out of a falling channel that has persisted for over seven months.

• Historical Comparisons: Similar patterns in 2020 preceded substantial price increases.
• Potential Catalysts: Upcoming events, including the U.S. presidential election, could influence Bitcoin positively.

As of press time, Bitcoin was trading at $67,090, a drop of almost 2% in the past 24 hours. For Bitcoin to avoid a bearish scenario, it must hold above the critical $65,000 support.