Bitcoin, or BTC, does not seem to have the strength to test its ATH record point of $67,000 that was reached on 20th October, once again. As a result, investors are concerned if the bullish momentum of the cryptocurrency has faded. Nevertheless, despite these hurdles in the way of the price, it is still far too early to think of the support level of $58,000 being tested as a descending channel beginning to emerge.
Bitcoin’s Immediate Outlook
One of the factors that are restricting Bitcoin’s rally has been the US’s uncertainty regarding regulation. Anne Termine, an expert on regulatory investigations as well as an ex-chief attorney of trials at the Commission for Trading of Commodities Futures, stated that no simple answers are available right now.
Meanwhile, increasing adoption has increased the pressure on traditional banks into finding offerings related to cryptocurrency products. For instance, Tinkoff, a major Private Bank from Russia, and holders of huge services regarding online brokerage have started researching investment services related to crypto. However, the Bank of Russia has withheld launches like this.
A good indicator of the bearishness or bullishness of professional traders is the “basis rate” or futures premium. The derivatives market of Bitcoin has not shown any bearish sign so far. However, a potential channel that is descending has started on 19th October, which is a cause for worry. If this momentum is confirmed further, traders can expect the $60k level to become a level of resistance before 12th November.
Professional traders are also not showing any stress signs right now. As a result, the correction had happened following a three-week-long rally of 63% that resulted in the ATH record $67,000 on 20th October should not pose any problems.