Bitcoin May Start Moving Towards $88K

Bitcoin is still far from its all-time high of $67,000, but analysts are confident that a new upward wave is imminent.

According to traders, the price of Bitcoin (BTC) entered a “consolidation phase” on October 22nd. Investors are taking profits after a continuous rise in prices that began on October 1. In just three weeks, BTC is up 55%.

Bitcoin price dropped from $63,300 support to $60,000 on Friday, according to Cointelegraph Markets Pro and TradingView.

Decentrader analysts view the current price movement as a long-awaited event for the company. In their opinion, Bitcoin could grow in the fourth quarter of 2021, thanks to the recent launch of the Bitcoin ETF.

Decentrader also noted that Bitcoin, after overcoming previous historical highs, often continues to grow. Therefore, it is possible that the price of Bitcoin will soon reach $72,000. And if we manage to maintain momentum, growth to $88,000 is possible.

The surge in derivatives funding seen over the past couple of days has now been “pushed back to more balanced levels,” while open interest remains in line with the uptrend, which Decentrader believes helps reduce the risk of a correction lower.

After the successful market launch of the first Bitcoin ETF, they began to compare it with the appearance of the first gold futures. According to Bloomberg Intelligence, the significant inflow of money into the new ProShares Bitcoin Strategy ETF shows pent-up demand and the desire of quantitative traders for arbitrage opportunities, which are likely to narrow spreads and affect volatility.

The chart above shows the relationship between Bitcoin futures price charts and gold futures. Bloomberg Intelligence analysts added:

“We see BTC trading like gold.”

Analyst Michaël van de Poppe has released a chart that outlines the lower support area for Bitcoin.

According to van de Poppe, the $64,000 zone was a “critical level” for the price to break above, which failed. Therefore, there is a correctional movement. He added that overall, a good purchase price is between $56,000 and $59,000.

The total cryptocurrency market capitalization at the time of writing is $2.518 trillion, and Bitcoin’s dominance rate is 45.5%.

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