Due to $200 million in liquidations, bitcoin’s price could drop to $66,000
Due to $200 million in liquidations, bitcoin’s price could drop to $66,000
Bitcoin's recent price pullback, coupled with rising market tension around the U.S. presidential election, has triggered a sharp downturn in BTC prices, erasing approximately $200 million in long positions. Currently priced below $70,000, Bitcoin’s latest struggle comes after an attempt to push toward all-time highs earlier this week at $73,800 was met with strong resistance. Market analysts now warn of a potential “deeper correction” before Bitcoin’s bullish trend can resume.
Popular analyst Titan of Crypto suggests Bitcoin could see a “local bottom” around the $66,200 level if it continues to trend downward. His latest analysis, shared on social media platform X, notes that BTC recently failed to close above the Tenkan-sen, a key trend line in the Ichimoku cloud indicator, which typically signals a potential pullback. Titan of Crypto further highlighted that should Bitcoin successfully retest the Kijun level at $66,200, it could mark a solid support level for a bounce back upward.
Bitcoin’s Struggle with Key Support Levels Amid Election Tension
Other traders are watching for key bounce zones. Notably, Credible Crypto sees the $65,000 to $69,000 range as critical for a potential rebound. He describes it as a “must-bounce zone,” warning that if Bitcoin fails to hold this level, a more significant correction may ensue. On the more optimistic side, fellow trader Alan Tardigrade observes that Bitcoin has retraced to the Fibonacci 0.618 level, often regarded as a healthy support point during pullbacks. If this Fibonacci level holds, Tardigrade predicts a resurgence in Bitcoin’s upward momentum.
Election week volatility has become a focal point for Bitcoin traders as market conditions become increasingly unpredictable. Analysts at trading firm QCP Capital report that despite the dip, open interest (OI) for both Bitcoin futures and options remains elevated. OI currently stands at $40.65 billion for BTC futures and $25.3 billion for options, showing respective increases of 24.2% and 36.7% since early October. These heightened figures suggest sustained interest in Bitcoin, even amid current volatility. QCP Capital also points out that the options market is trading seven-day implied volatility for BTC at 74.4%, a significant increase from the past week’s realized volatility of 41.4%. The rising implied volatility reflects growing uncertainty around the U.S. election and the Federal Reserve’s upcoming interest rate decision, both of which are expected to impact Bitcoin’s price in the short term.
As the week unfolds, investors and analysts alike are keenly watching for signs of stability within Bitcoin’s “must-bounce zone” and the potential for another rally. With increased trading volume and heightened volatility, Bitcoin’s path forward will likely be shaped by external factors, including election results and federal policy announcements. Should Bitcoin establish a local bottom as analysts predict, it could set the stage for the cryptocurrency’s next upward push.
Meanwhile, Bitcoin is dropping ahead of the U.S. elections
