Bitcoin Holds Strong at $60K: Is a Breakout Imminent?

TLDR

• Bitcoin price dropped to around $60,000 after briefly rising above $63,000
• Open interest has exceeded $18 billion, historically associated with major corrections
• Funding rates are slightly above the 200-day SMA, suggesting long traders still dominate
• Analyst suggests a “final shakeout” may occur before a potential new all-time high
• Bitcoin remains in a descending parallel channel, with $66,000 as key resistance

Bitcoin’s recent price movement has caught the attention of investors and analysts alike. After a brief surge above $63,000, the leading cryptocurrency has retreated to the $60,000 range, prompting discussions about its next potential move.

CryptoQuant analyst Aytekin recently shared insights on the current market situation. According to Aytekin, Bitcoin’s open interest has surpassed the critical $18 billion level.

Historically, when open interest reaches this point, it has often led to significant price corrections.

The current market sentiment appears to be split. Some believe Bitcoin is on the verge of a major upward move, while others think the downward trend will continue.

A common view is that Bitcoin may need one last price shake-up before potentially reaching a new all-time high.

Funding rates, which indicate the mood of derivatives traders, are slightly above the 200-day simple moving average (SMA).

This suggests that long-term traders still have a strong presence in the market. However, Aytekin noted that in the past, significant price drops often occurred when funding rates turned negative, which hasn’t happened in this case.

Bitcoin Price on CoinGecko

Over the past 24 hours, Bitcoin’s price has decreased by 2.9%, trading at $60,485 at the time of writing. This decline follows a short-lived rise to $63,774 earlier in the week, which had raised hopes for a possible move towards the $65,000 and $70,000 marks.

Crypto analyst Ali provided additional context on Bitcoin’s price action. According to Ali, Bitcoin is currently trading within a “descending parallel channel.”

The cryptocurrency was rejected at the upper boundary of this channel, which could signal more downward movement.

#Bitcoin remains stuck in a descending parallel channel.

After the recent rejection at the upper boundary, we might see a drop to the middle boundary at $58,000 or even the lower boundary at $52,000. A bullish breakout won't happen until $BTC clears $66,000! pic.twitter.com/yFvS6jxmKB

— Ali (@ali_charts) October 9, 2024

Ali suggested that Bitcoin’s price might drop to the middle boundary at $58,000 or even the lower boundary at $52,000.

Ali emphasized that a bullish breakout is unlikely unless Bitcoin can clear the $66,000 level, which has acted as a significant resistance point in recent weeks. This price point appears to be crucial for Bitcoin’s short-term price direction.

The current situation has left many investors and traders wondering about Bitcoin’s next move. While some see the potential for a final price shakeout before a possible new all-time high, others remain cautious about the ongoing downward trend.