Bitcoin experienced a decline from its peak of $68,722 to $65,521, resulting in a 5% loss, primarily influenced by the scrutiny surrounding Tether. However, Bitcoin has since rebounded to $67K amidst the ongoing volatility in the global crypto market.
The dip in Bitcoin’s price was driven by various news that emerged, ultimately causing the cryptocurrency to drop by 5%. The Wall Street Journal reported that Tether, a major player in the crypto industry, was under investigation by U.S. authorities. Tether and its CEO swiftly denied these claims, dismissing them as old rumors. Nevertheless, the damage was already done, significantly impacting market sentiment.
As a result of Bitcoin’s decline, other major cryptocurrencies also experienced a downturn, leading to a 10% decrease in daily trading volume worldwide. This slump triggered widespread liquidations in crypto derivatives markets, resulting in 139,577 traders losing $391 million within the last 24 hours. Notably, $325 million of these losses were related to long positions, occurring just as Bitcoin was nearing the $69,000 mark before the Tether news.
The market’s unease was further exacerbated by reports of an Israeli missile strike on Iran, highlighting how geopolitical tensions can ripple through crypto prices.
Despite these setbacks, Bitcoin’s performance over the week only reflects a modest decline of 2%, with the cryptocurrency testing the $69,519 level on October 21. On a positive note, Bitcoin is still up approximately 5% for the month, bouncing back from a dip to $59,500 earlier in October. As of now, BTC is priced at $67,039.
Examining Bitcoin’s current price action and volatility, the 4-hour BTC/USDT technical analysis reveals increased volatility, with the RVI at 50. Additionally, the BBPT indicates potential bullish trends at levels 1.92 and 2.00, while the low bearish threshold of 0.08 and a trend value of 0.67 suggest a cautious, low-volatility environment. In order for bulls to regain control, Bitcoin’s volatility must decrease.
Meanwhile, the RSI stands at 51, indicating a neutral market position where neither bullish nor bearish momentum prevails, according to TradingView data.
In terms of the overall outlook, Bitcoin may experience slight upward momentum if it breaks through resistance levels at $67,250 and $68,220. However, given the current neutral RSI and mixed signals from the BBPT, the price may remain range-bound until stronger bullish or bearish indicators emerge. A breakout above the bullish levels could lead to upward movement, while a drop below the support level of $66,150 could result in increased selling pressure.