Bitcoin (BTC) faces a “more severe decline” after weekend BTC price weakness cost it $200 million.
In his latest market analysis on X, renowned trader Crypto Titan joined in warning of a deeper correction for BTC/USD.
The BTC price battle intensifies on a daily basis.
Bitcoin continues to struggle after rejecting a near all-time high of $73,800 earlier this week.
Market anxiety over the upcoming US presidential election has further exacerbated the already heated Bitcoin trading environment, with open interest hitting record highs.
Observers now see the risk of BTC price reversing further before the uptrend resumes.
“Local bottom at $66,200 before bounce?” Titan of Crypto asked a question.
The attached chart shows Ichimoku cloud data for a 1-day period, with prices breaking below Tenkan-sen, one of the indicator’s main trend lines.
“BTC was unable to close above Tenkan, suggesting the potential for a deeper decline,” he continued.
“If a breakout is confirmed, the reference price could be retested around $66,200, which could mark a local bottom.”
BTC/USDT 1-day chart using Ichimoku cloud data. Source: Titans of Crypto/X
Previously, Titan of Crypto had identified $71,300 as a critical resistance level to flip for support during its monthly investigation into Ichimoku.
Bitcoin traders lined up in the bounce zone.
Meanwhile, Bitcoin liquidated $200 million worth of long positions on its way down to current levels, including a temporary dip below $68,000.
relevant: With Bitcoin ETFs receiving close to $1 billion in daily inflows, BTC price risks hitting new ‘FOMO’ highs.
According to data from Cointelegraph Markets Pro and TradingView, there has been only a slight rebound since, leading to more BTC price decline predictions.
BTC/USD 1-hour chart. Source: TradingView
Popular trader Credible Crypto called the area between $65,000 and $69,000 “an area where there should be a bounce,” reiterating that there may still be room for gains from this week’s near all-time high.
He warned of a “bigger correction” on November 3, concluding: “For now, let’s see if we can get this rebound and take it from there.”
source: Super Bro
Others were more confident in a market reversal.
“Bitcoin is trending lower towards the Fibonacci level of 0.618, which is common support for a healthy downtrend,” said fellow trader Alan Tardigrade.
“If this level holds the BTC price, there will be another impulsive move.”
BTC/USD chart with Fibonacci levels. Source: Alan Tardigrade/X
Trading sources agreed there is a risk of higher volatility during the election week that drives the Federal Reserve’s next interest rate decision.
“Despite the Bitcoin price dropping below $69,000 on Friday, we continue to see significant interest in the market. Total OI for BTC futures and BTC options rose to $40.65 billion and $25.3 billion, respectively (+24.20% and +36.76% increases in comparison). until early October),” said trading company QCP Capital in part in a recent notice sent to subscribers of its Telegram channel.
“The options market is trading at 74.4% of BTC 7-day implied volume, which is significantly higher than the previous 7-day realized volume of 41.4%, indicating a significant risk premium around the election.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.