Just before the close of the last day, Bitcoin (BTC) price set a new high at $69,170, breaking the previous ATH of $68,789.63. This was the bulls' ultimate push to break above $70,000, but the bears managed to contain the rally long before that. However, the subsequent plunge was not surprising but rather expected as many believed that panic sellers who fell prey to the FUD trap would flee in no time.
While the current trading setup appears to be quite bullish as the price has largely recovered, the larger outlook remains under a bearish threat. It is worth noting that despite immense upside efforts, BTC price is unable to rise above the “key resistance.” However, it is similar to the trading structure that formed in 2020 and with it there is a possibility that the price could fall below $60,000 one last time.
The current trading setup is similar to the run in 2020 where Bitcoin saw an ATH breakout and subsequent 15% decline. This forced open interest to decline as the more than 900 million late longs were liquidated. Additionally, funding rates were reset to neutral, resulting in a sustained price decline. So, if BTC price follows the previous trading setup, it could see another decline, probably to $58,000 as predicted by a popular analyst, Emperor.
Regardless, Bitcoin is still believed to have initiated a parabolic move to reach a high of $100,000 or more in the current cycle. BTC price recovered in 2020, leading to a wonderful uptrend, rising from levels around $17,500 to $68,789. With a decline to levels around $58,000 now expected, the impending recovery could push levels well above $100,000 in the next 6 to 8 months. Therefore, the star crypto could provide an ultimate buy-the-dip opportunity before flying high towards the new ATH.
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