- Bitcoin has returned to its $60,000-$64,000 channel after dropping out of it temporarily
- A flash crash to $58,000 was bought up within hours
- New highs could be on the table if Bitcoin can overcome a downtrend
Bitcoin has jumped back into the channel it first entered two weeks ago, despite a flash sell that saw it wick down to $57,800. On Wednesday we referenced Bitcoin’s new channel between $60,000 and $64,000 into which it returned having been unable to hold the recent highs of $67,000. Having dropped briefly out of the channel yesterday it has now regained it, at the same time breaking a downtrend that suggests further gains could be on the horizon.
Bitcoin Looking to Cement Break of Downtrend
Aside from a 48-hour spell when it hit $67,000, Bitcoin has been acting within the $60,000-$64,000 since October 15, and on Wednesday we suggested bullish and bearish arguments for how it could resolve itself. Bitcoin seemed to have chosen the bearish option, falling through the bottom of the channel and tapping support at $58,000, but in a show of strength it reversed the loss and came straight back in the channel again:
This show of strength includes recovering from a flash sell from $61,200 to $57,800, showing that there is real buying appetite at the $58,000 level. Bitcoin has since held the mid-channel level, which has given us and extra bullish scenario as it has now broken the downtrend that started at the $67,000 top:
If Bitcoin can remain above the trendline then the next stage is to see if it can put in a higher high and higher low, which would suggest that it is in position to take out the $67,000 top. If it can’t maintain this level then we face the scenario where a third lower high and lower low has been put in, which will result in more likelihood of another test of the $58,000 level.
Ethereum Set For Mega Run
Ethereum meanwhile has been going great guns while Bitcoin has been recovering, hitting record levels of $4,400 and looking to once again challenge a key resistance level:
If ETH can reclaim this level and turn it into support then it could be set for one of the most epic runs in its history, something that hasn’t been missed by the community:
How are you gonna look your grandchildren in the eye and tell them you didn’t put your net worth in this pic.twitter.com/8zD6S3e6Er
— TraderSoros (@TraderSoros) October 29, 2021