After a remarkable start to ‘Uptober,’ Bitcoin (BTC) has recently seen significant volatility, retesting multiple crucial levels. As the price bounces from the $110,000 mark, some analysts have suggested that BTC’s rally won’t restart until a key area is reclaimed.
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Bitcoin Needs Key Reclaim For New Highs
Over the past week, Bitcoin’s price has fluctuated between its range’s lower and upper boundaries, hitting both a new all-time high (ATH) of $126,000 and a three-month low of $102,000.
Notably, the crypto market saw one of the largest liquidation events in history on Friday, which briefly sent BTC’s price below $107,500. The flagship crypto quickly bounced from the lows and reclaimed the $110,000 barrier as support over the weekend, attempting to reclaim the $116,000 level twice since Sunday.
Analyst Ted Pillows noted that holding the crucial $110,000-$111,000 zone could set the stage for a bounce back to the high of its three-day range, but warned that losing this area could send the price to the $107,000 support before a reversal.
Similarly, Daan Crypto Trades highlighted that despite the pullback, BTC’s range between $107,500-$124,000 has held and the key horizon levels have been respected, with “many large pivots and moves happening from these areas.”
The trader suggested that Bitcoin will likely continue to “chop” within the range’s mid-zone, where most price action has occurred since Q3, until it reclaims and retests $117,000 as support.
To achieve this reclaim, analyst Rekt Capital pointed out BTC must show continued stability around the $114,000 area as it has “historically preceded upside into at least $117.3k.”
He noted that on the previous occasions when the price Daily Closed above this level, Bitcoin was able to rally to at least $117,300, even if the bounce eventually led to more downside action.
Nonetheless, “for bullish bias, it’s important $117.3k doesn’t turn into a resistance on this current move and so Bitcoin will need to Daily Close above $117.3k to continue towards $120k over time,” the analyst warned.
BTC’s Macro Structure Shows Strength
Rekt Capital highlighted that BTC managed to maintain its macro bullish market structure, continuing to “print progressive Higher Lows despite the drastic downside, which is a sign of strong continued premium-buying behaviour on price pullbacks.”
He also noted that Bitcoin has been consolidating within the $108,000-$116,000 levels in the monthly timeframe, upside wicking beyond the range high and downside wicking below the range low since July.
The analyst suggested that the downside wicks could be a positive sign since “it signifies a liquidity grab at lower price levels that could add the necessary fuel to attempt a Macro Range breakout.”
“As a matter of fact, Bitcoin has been upside wicking beyond the $116k Range High far more frequently in recent months compared to the downside wicking below the $108k Range Low, which is a testament to the Range Low’s role as a stable higher timeframe support,” he explained.
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Rekt Capital added that a downside wick below the range low was inevitable, as the price had not experienced such volatility in months. He concluded that holding the $114,000 support in the weekly timeframe is the key level for a new challenge of the Range Highs.
As of this writing, Bitcoin is trading at $112,610, a 2.7% decline in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
