Bitcoin (BTC) Ready to Test Psychological Area at $60K – Weekly Forecast

Briefly –

  • BTC might retrace to $50K or $48K after failing to maintain beyond the 70.5% FIB retracement at $54,182.
  • This drop will form a stage for a rise towards the next psychological level at $60,000.
  • On-chain metrics show increased holders in profit, indicating the near-term retracement scenario.

Bitcoin seems ready for retracements after its recent buying pressure upsurge. Though the technical picture supported the surge, the uptrend rate didn’t and might be due to the hype surrounding futures ETF approval.

Regulations and Adoption

Bitcoin has witnessed heightened adoption this year. With increased BTC usage by Salvadorians and increasing Bitcoin ATMs installation, the leading coins seem to have a brighter future. Though retailers adopted BTC in large numbers, institutions are now joining the bandwagon. JPMorgan revealed that institutions are turning to Bitcoin as an inflation hedge against gold.

With the increased BTC interest, Bitcoin ETF futures approval is ideal. With it, large investors can gain Bitcoin exposure without holding the token. Bloomberg analysts believe that the chances of SEC approving BTC ETF this month are at 75%.

Such actions will catalyze a bullish run in quarter 4. With that, the token will fully recover from the 19 May crash. Meanwhile, some whales want to join the race. Ki-Young Ju, CryptoQuant CEO, tweeted that an investor bought $BTC worth $1.6B through market orders in five minutes. Moreover, Alex Kruger, an analyst, believes ETF anticipation contributes to the highs seen in the crypto markets.

Bitcoin Forecast

Bitcoin surged 37% from 29 September to 6 October, rising to $55,800 from $40,750. The coin closed beyond the 70.5% FIB retracement at $54,182 on the daily price chart. However, the candle close below the level indicated investors booking profits.

Also, the MRI displayed one red sell sign on the candle, suggesting a 1-to-4 candle correction after an overextended rally. Market players can expect the asset to correct to $50,000 psychologically. Breaking below this level might see the coin hitting the demand territory in the $43,716 – $48,834 range.

Meanwhile, a bounce from the area might mean a reset in the market, allowing buyers to accumulate ad discounted prices. Market players can see the reignited bullish rally to overcome $50,000 and rally to 79% FIB retracement at $57,269 before hitting the psychological area at $60,000.

A significant-close past this zone will push Bitcoin to retest its ATH of $64,895. From here, persisting buying momentum will have BTC forming a new record peak.