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While the ongoing Bitcoin uptrend continues to endure, the leading crypto asset is at a critical decision point.
Seasoned market watchers are highlighting factors that could confirm a further upswing or signal the onset of another severe bearish market.
In a post on X, global macro investor Raoul Pal warned market participants not to get ahead of themselves by discussing extreme price targets for Bitcoin. He noted that the danger is not over until Bitcoin convincingly breaks the key psychological price level of $70,000.
Pal is cautioning against over-optimism until Bitcoin demonstrates solid upward momentum by surpassing $70,000. His warning came after Bitcoin first reclaimed $65,000, having tested the $58,000 channel earlier.
Veteran Analyst Says $72K Is Critical
While Pal targets $70K, veteran market watcher Peter Brandt argues that Bitcoin needs to cross over $72,000 before speculations for higher price targets become valid. Otherwise, the market may experience a significant correction following the one-month-long uptrend.
$72k for me https://t.co/BOfiNsz8KM
— Peter Brandt (@PeterLBrandt) October 16, 2024
In an analysis yesterday, Brandt highlighted that Bitcoin is in a “window” where it must either break through or risk having the window slammed shut. The chart illustrates how Bitcoin has faced resistance each time it approached the $70,000 target over the last seven months.
Specifically, it showed that during each failed attempt since the March peak to surpass the long-term trendline, Bitcoin underwent a significant downturn. Interestingly, each retracement has been more intense than the previous one, while the rebounds have been weaker.
For instance, after hitting $73,750, Bitcoin crashed to $60,000, rebounded to $71,500, then fell again to $56,500, surged above $68,000, and subsequently plummeted to $53,400. In the most recent case, Bitcoin tanked to $49,000 after recovering from the low of $53,400.
Bitcoin At Risk of 30% Collapse
Now that Bitcoin reached $68K yesterday, it has entered a problematic zone where it could either continue its upward trajectory or experience a significant decline, consistent with past trends.
Analyst Rekt Capital expressed a sentiment similar to Brandt’s in a separate analysis. He argued that the danger would be averted if Bitcoin could close this week above $68,000. Failure to do so risks a price crash of over 30% from the current level.
Interestingly, intelligence platform Santiment has cautioned that overheated calls for the $70K level for Bitcoin are in themselves a bearish signal. This is because the market’s direction tends to oppose the popular optimism in the community.
Notably, Bitcoin is preserving its recently accrued gains, reaching $68,375 as of Wednesday evening. Following a minor pullback, the leading cryptocurrency is hovering around $67,500 at press time, just 3.7% away from hitting $70,000.