Bitcoin’s 60000 Resistance Suggests A Buy Dip Opportunity Before Things Get Out Of Hand
Bitcoin liquidity is changing and that means that holders get a new opportunity to “buy dip”.
As the on-chain analyst Material Scientist noted on October 12, the order book is now repeating the behavior from August.
Order book data drives bullish fall
After August hit a mid-cycle low of $ 29,000, August fueled the upside prospect before turning sideways in September.
Since then, October has strengthened the bullish mood again and the order book data prove this.
Materials scientist comment:
“Resistance at USD 60,000 – ask for the first time since August> bid on a price range of 20%.” If BTC is rejected, it provides a good dip purchase opportunity en route to ATH. “
data offer / ask Bitcoin and BTC / USD price | The source: Materials scientist
In other words, as BTC approaches $ 60,000, many sellers are asking for higher prices – in the region of 20% of the spot price.
As other users have added, the divergence between the bid and ask orders coincides with the local high and low of the spot price, which further increases optimism about current price developments.
A strong divergence between bids and demands is pretty well suited to indicate below and above, tbh pic.twitter.com/dbW90aXNYJ
– Coinmaster Yadox (@Yodaskk) October 12, 2021
Resistance “will no longer play a role in a few months”
Meanwhile, analysts have mixed predictions about when a potential correction might occur and how long it might take.
While the $ 45,000 low is likely to repeat itself, the lack of interest from the seller side has led investors to speculate that Bitcoin is heading for an all-time high (ATH).
“Macro-technically, BTC is preparing for the second phase of the cycle. Hence, the price will be in the last major resistance area before hitting a new ATH. In the short term, this resistance could still be a problem. But not in a few months ”, trader and analyst Rekt Capital explain on December 10th
BTC / USD buy / sell level (Binance) from October 12th | Source: material indicators
The scarcity of the Bitcoin supply sets the stage for higher prices
Renowned DataDash analyst Nicholas Merten examined a key metric to explain what is driving Bitcoin’s bull run towards a new ATH.
In one Video More recently, Merten said investors hold Bitcoin for long periods of time. This bodes well for his year-end goal of $ 100,000 and beyond.
“Market prices generally rise or fall due to inflows and outflows. When we know that there are a lot of people looking for a market to sell or buy, we can usually predict the direction of the price. Accordingly, trend detection can be much easier.
BTC is preparing the ground here to rally to ATH in the near future. It really could be this month if the momentum continues to be strong. But I like to keep my estimates as conservative as possible and assume that in a month, a month and a half, two months, three months we will see something. “
Merten noted the recent rise in the price of Bitcoin despite the lack of noteworthy news events about the world’s leading cryptocurrency.
Merten refers to the HODL wave indicator. Because this on-chain data allows anyone to check how long a buyer is holding BTC. The analyst noted the trend of holding BTC for longer periods of time.
“They don’t move over a 24 hour period, from a day to a week, from a week to a month. BTC is actually held for longer periods of time.
If you observe the general on-chain trend, more and more people are taking the long-term approach. There will be no effects on the seller side, at least not for a long time. “
Source: Nicholas Merten
Based on these data, Merten remains confident that BTC can hit a new ATH this year.
“I expect BTC to bounce back to ATH $ 65,000 by the end of the year and then create the conditions to keep moving up, creating new ATHs and eventually a six-digit range of $ 100,000. . With the most euphoric estimate, BTC will hit $ 200,000 this cycle. “
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