Bitcoin price prediction: BTC collapsed below $36,000
Bitcoin price prediction: BTC collapsed below $36,000
Following the release of the U.S. Bureau of Labor Statistics (BLS) report, Bitcoin collapsed below $36,000 and is currently consolidating around $35,600.
The cryptocurrency market is trading in the red even though the BLS reported better-than-expected Consumer Price Index (CPI) data for October.
The year-over-year growth in the CPI for October slowed to 3.2% from 3.7% the previous month. Analysts had expected the index to rise by 3.3%.
At the same time, leading experts noted that while the cryptocurrency market is collapsing, the stock market is experiencing a sharp inflow of funds that exceeded $700 billion in just two hours.
Many analysts also point to another factor contributing to Bitcoin's collapse: a significant spike in the closing of long BTC positions, totaling over 133 million in the last 24 hours.
According to CoinGlass, liquidations totaled $366.27 million in the last 24 hours, affecting 103,213 traders. The largest liquidation order occurred on the OKX exchange at $9.45 million on BTC-USDT-SWAP.
This surge in liquidations, coupled with the decline in Bitcoin trading volume, points to another pullback.
It's worth noting that despite the sharp decline, Bitcoin is still up 109.40% over the past year and is up 113.25% since the start of 2023.
Analysts have long pointed out that the market was potentially overheated and in need of a correction, which is now happening, albeit belatedly.
However, experts emphasize that while the cryptocurrency market is currently experiencing a challenging environment of regulatory uncertainty, macroeconomic factors, and shifting investor sentiment, and the short-term outlook points to instability, the long-term outlook remains positive.
Cathie Wood, CEO of ARK Invest, believes that key indicators confirm that BTC is in a true bull market.
"Bitcoin looks as good as it gets. And it looks like a bull market. Of course we're going to have puts and takes. Nothing is going straight up," Wood said.
"We think Bitcoin is going to be more efficient in the long run," she added.
Currently, the price of BTC is down 2.83%, trading at $35,611.96.
The next resistance level for bitcoin is $35,680, and the key resistance level is around $36,000. If BTC can break above $36,000, it could continue to rise and test key resistance at $36,780. If the asset is able to consolidate above this level, it will have strong momentum to move towards $37,000 and above.
However, if BTC fails to rise above the $36,000 resistance zone, it could extend losses and test the $35,150 support, breaking through which it will face the $35,000 support.
Read also: Crypto.com introduces Strike Options.
