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BITCOIN TECHNICAL ANALYSIS: A MINI-CRASH BEFORE THE RALLY

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Abstract:Bitcoin hodlers are wary as price hovers around $60,000 support.

  Bitcoin hodlers are wary as price hovers around $60,000 support.

  $63,200 price level has become a major resistance level as the price already dropped twice from there. It has become a major hurdle for the bulls if the price wants to keep rising.

  The $60,000 support was broken during the early hours of Wednesday before the price rallied back to $62,500 on Friday. A low of $56,425 was made on Thursday before the rally, according to data received from TradingView.

  Price is holding below the $63,200 resistance level as the market opens for the new week.

  With neither the April nor October all-time highs seeing a retest so far, the price of Bitcoin might experience a mini-crash before the rally. The next support area is at $54,500, which is a good buying price.

  The long-term trend is still healthy and strong, but a mini-crash/correction here and there is inevitable as the market always needs to reset before gathering momentum.

  Albeit, expectations remain sky-high - as much as $300,000 in the coming months. Bulls run might continue into 2022, according to reports on Cointelegraph.

  When compared to April's $64,900 peak, which provided barely any support for the price before it took a heavy hit, the 'Uptober' new all-time high of $67,100 is also not giving price support as price drifted away easily from it. Bitcoin has seen a more than 10% dip since it made a new all-time high. Is a crash imminent?

  As bears began to surface, Bitcoin was in no mood for abandoning its new trading zone - analysts argued that $50,000 would still constitute solid price action.

  In addition, reports from Cointelegraph indicated that during bull runs, mass inflows of BTC to exchanges tend to signal the price point at which the masses plan to sell - and hence the likely price top.

  More broadly, the amount of Bitcoin held on exchanges has been falling - and this accelerated since the May price crash.

  The latest data revealed that Binance has diverged from other major platforms this month, seeing inflows of BTC to its order book, while most of the rest continue shedding reserves.

  The run to new all-time highs for BTC overall produced a slight uptick in exchange BTC levels, but this is negligible when viewed against the overall downtrend.

  Hodlers are already known to have little interest in selling such a short way past previous all-time highs, and institutional buyers are assumed not to be planning snap sales just after gaining exposure.

  Derivative exchanges have seen particularly active buying over the past week.

  And as change is afoot in the crypto market sentiment, investors are getting wary. This is nothing like how they were feeling earlier in the month.

  A report from Cointelegraph revealed that the Crypto Fear & Greed Index, unsustainable optimism in “Uptober” is no longer the mood when it comes to Bitcoin or altcoins.