Bitcoin Price Analysis: Bulls Struggle to Maintain Footing Above $60,000 Amid Bullish Flag Formation

Following another failure to reclaim the $63,000 mark last Friday, Bitcoin (BTC) has fallen into a downward spiral towards the $60,000 psychological level. That said, most altcoins have also suffered a similar fate over the last 48 hours, with several recording double-digit declines.

The benchmark cryptocurrency had a roller-coaster-like activity this week after it sharply dropped to $57,500 on Thursday and rebounded to the upper-$61,000 area within a few minutes. This minor flash crash came after it recovered from its latest slump below the $60,000 mark.

After this rebound, BTC kept the bullish pressure on and briefly touched the $63,000 critical resistance on Friday.

Nonetheless, bears capitalized on the volatile property of the $63,000 barrier and pushed prices lower. A few hours later, the primary cryptocurrency had dropped to the $61,000 level and, subsequently, lower.

The bearish price action has pushed Bitcoin’s market valuation below the $1.15 trillion mark and its market dominance below 45%.

Meanwhile, Ethereum (which recorded a new all-time high on Friday) has slumped by over $260 over the hours.

Binance Coin (BNB), Cardano (ADA), Solana (SOL), Ripple (XRP), Polkadot (DOT), Dogecoin (DOGE), and Shiba Inu (SHIB) all traded down this morning with -1.2%, -2.5%, -4.3%, -0.5%, -4.1%, -7.3%, and -12.6%, respectively.

Key Bitcoin Levels to Watch — October 31

As noted earlier, BTC is at risk of falling from the $60,000 support amid an overall sideways bias. A fall from the current price level could push the benchmark cryptocurrency to retest the $57,500 support, which should align with the 4-hour 200 SMA if that happens.

Interestingly, BTC currently trades within a bullish flag on our 4-hour chart. That said, the possibility of a dip below the $60,000 support in the near term seems likely but should spur a sharp recovery above the $65,000 resistance. However, a break (without necessarily dropping to the $57,000s) above the top of our flag should trigger a recovery as well, although with lesser vigor than the recently mentioned scenario.

Meanwhile, my resistance levels are at $61,000, $61,785, and $63,000, and my key support levels are at $60,000, $59,000, and $57,500.

Total Market Capitalization: $2.57 trillion

Bitcoin Market Capitalization: $1.13 trillion

Bitcoin Dominance: 44.4%

Market Rank: #1

 

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