Bitcoin Breaks $75K-$80K: Dawn of Opportunity, Hidden RisksThe Bitcoin [BTC] price chart suggests a potential shift in market structure, potentially breaking out of the $50K$72K price range thats held since March. Analyst StockmoneyLizards predicts this breakout could occur within two weeks, and if the recent dip below $60K is confirmed as a higher low, BTC could rally towards $75K-$80K
Bitcoin Breaks $75K-$80K: Dawn of Opportunity, Hidden Risks
The Bitcoin [BTC] price chart suggests a potential shift in market structure, potentially breaking out of the $50K$72K price range thats held since March. Analyst StockmoneyLizards predicts this breakout could occur within two weeks, and if the recent dip below $60K is confirmed as a higher low, BTC could rally towards $75K-$80K.
Supporting this optimistic outlook is the growing investor demand. BTC has been climbing higher lows since August, a price action pattern that suggests a potential market structure shift, particularly ahead of a higher high.
Data from CryptoQuant shows that the significant demand for BTC over the past 30 trading days indicates investor appetite has reached levels seen in May. Investors scooped up approximately 150K BTC, worth around $9.4 billion, between late September and mid-October. If this pattern persists over the next two weeks, rising demand could support StockmoneyLizards breakout prediction.
However, the increasing leverage poses an imminent risk to the breakout expectation. According to Glassnode, the recent weekend surge from $58.9K to $63.4K flushed out some short sellers. But the Open Interest (OI) decline hasn't surpassed 5%, a level historically associated with sustained Bitcoin rallies.
In short, the heightened volatility and liquidation risk on both sides of the price direction could disrupt the expected breakout. Meanwhile, BTC, valued at $62.8, is consolidating below the 200-day moving average (MA) as of press time.
Here are the risk factors associated with BTCs short-term breakout outlook:
- Rising Leverage: The climb in Open Interest (OI) suggests that speculators are borrowing money to open BTC positions in the futures market, increasing market volatility.
- Liquidation Risk: As leverage increases, sharp price movements could trigger a cascade of forced liquidations, amplifying market volatility and sabotaging the expected breakout.
- Open Interest (OI) Decline: If OI declines by more than 5%, historically BTC has seen sustained rallies, suggesting potential bearish sentiment in the market.
- 200-day Moving Average: BTC currently consolidating below the 200-day moving average (MA) suggests potential resistance in the short term.
Despite the risks, the resurgence of investor demand and the potential market structure shift suggest that BTC could potentially break out and rally towards $75K-$80K. However, investors should proceed with caution, closely monitor market developments, and adjust their investment strategies accordingly.
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
