Bitcoin Dips Below $63K: What Does Technical Analysis Say?
By Benzinga
In his latest “Monday Markets” podcast, technical analyst CryptoCred offers insights into the current cryptocurrency market, focusing on Bitcoin’s (CRYPTO: BTC) key levels and potential trading strategies for altcoins.
What Happened: CryptoCred identifies $64,200 as a crucial resistance level for Bitcoin on the weekly timeframe, noting that it represents the highest close before a recent pullback. He suggests that a breakthrough above this level could signal strength, while a rejection might lead to a deeper pullback towards $58,000-$58,700.
On Oct. 7, Bitcoin prices briefly peaked at $64,198 before dropping to $62,420 at the time of writing.
For short to medium-term trading, CryptoCred outlines a range between $64,200 as the high and $58,000 as the low, with a midpoint around $61,700. He emphasizes the importance of these levels across multiple timeframes, from weekly to 4-hour charts.
Regarding altcoins, CryptoCred advises a trend-following approach with aggressive invalidation criteria. He states, “You always trail up based on the next level of support… as soon as one breaks, it’s worth getting out.” This strategy aims to avoid unnecessary drawdowns while still capturing uptrends.
Also Read: Bitcoin’s ‘Uptober’ Upswing Will Resume Soon: JPMorgan
Why It Matters: CryptoCred highlights the importance of updating invalidation levels as trends progress. He explains if traders are looking for a flat type of entry it has to be done on the low time frame.
For trending altcoins, he suggests focusing on the nearest daily or 4-hour support levels and exiting positions if these levels break. This approach allows traders to stay in strong trends while minimizing risk when market behaviour shifts.
CryptoCred concludes by discussing the relationship between low and high timeframe trends, noting that a break in a lower timeframe trend doesn’t necessarily invalidate a higher timeframe uptrend, but may signal a potential larger pullback.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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