Bitcoin Price Analysis: Key Support Levels to Watch as BTC Dips After Recent Highs
Bitcoin is currently facing critical support levels as traders react to recent price fluctuations, with BTC bouncing back from a 10-day low. In a recent update on October 24, Keith Alan, co-founder of the trading resource Material Indicators, highlighted the importance of an old resistance level from April 2021.
After reaching a peak of $69,000 for the first time since summer, Bitcoin (BTC) experienced a retracement this week. However, sellers did not maintain control for long. Following the opening of Wall Street on October 23, stop-loss levels were triggered, leading to a brief acceleration in downside momentum, as reported by Cointelegraph Markets Pro and TradingView.
This downward movement brought Bitcoin's price down to $65,000, marking its lowest point since October 10. Fortunately for bulls, a rebound occurred, pushing BTC/USD back above $67,000, thereby avoiding a critical test of the 21-week simple moving average (SMA), which currently sits at $62,700. Alan emphasized that this level must remain intact, with “no wicks below it,” to signal that the short-term uptrend is still valid.
Interestingly, this week’s low came perilously close to Bitcoin's previous all-time high from the last cycle—not from November 2021, but from April of that year, when it peaked at $64,950 on Bitstamp. Alan noted that Thursday’s price action provided a solid test of the Mid-Cycle Top, which is now closely correlated with the 21-Week MA.
An accompanying chart from Material Indicators outlined key zones of interest and trading signals from their proprietary tools. As previously reported by Cointelegraph, the crypto market is bracing for volatility, particularly with the upcoming US presidential election and the Federal Reserve's interest rate decision in two weeks.
Before these events, macroeconomic data releases could further contribute to market uncertainty. On October 24, the Purchasing Managers’ Index (PMI) and weekly jobless claims were scheduled for release. Material Indicators warned that a strong Jobless Report could lead to a price reversion for Bitcoin, adding that their latest bullish trading signal would be “invalidated” if BTC falls below the $65,000 level.
Despite the recent volatility, some market participants remain optimistic. Trader CrypNuevo noted that stop losses and liquidations had occurred, leading to a slight dip due to slippage. Meanwhile, crypto trader and analyst Michaël van de Poppe expressed confidence in a potential retest of all-time highs for Bitcoin within the next month, stating, “The dip has happened on Bitcoin.”
It is essential to note that this article does not provide investment advice or recommendations. All investment and trading activities carry risks, and readers are encouraged to conduct their own research before making any financial decisions.