Is Bitcoin price going to crash again?

Bitcoin (BTC) rallied to a Monday high of $64,448 on Oct. 7, after which prices declined by 4% in the markets. On the 4-hour chart, BTC is currently oscillating just above the 200-day EMA.

A candle close below this indicator may precede a further correction and another $60,000 retest.

Bitcoin OI spikes as price trends down

Bitcoin currently trades under $62,000, but futures traders may see this price as a short opportunity.

BTC’s price has steadily dropped as its open interest (OI) increased in the past four hours. Alongside OI, the funding rate remains positive, and aggregated spot volumes CVD on exchanges continue to drop, which hints that spot traders are also selling.

When the above data is collectively analyzed, the reasonable inference that can be drawn is that perpetual buyers are currently in “disbelief,” which means they are unfazed by the price downtrend.

The CVD data highlights that spot traders are aggressive sellers, and futures are directly dictating price action. Hence, the current sentiment among futures traders is short-term bearish.

However, this particular rise in OI is a little out of character for Bitcoin. Byzantine General, a Bitcoin analyst and trader, points out,

“$BTC open interest is going out of control while the price isn’t even moving. $ETHand $SOL have started pumping now, too. Unless there’s some insider info at play here, this doesn’t make any sense at all.”

Related: BTC price retests $62K as Bitcoin preps ‘very high impact’ month end

BTC fractal hints at a liquidity grab at $57,500

A market fractal is a historically repetitive pattern that allows traders to identify trend direction or reversal in the charts. In light of that, Justin Bennett, a professional trader, underlines a Bitcoin fractal that mirrors its Q3 behavior.

According to Bennett, Bitcoin is currently trending down in a descending channel. A liquidity grab to the upside around $64,000 is, therefore, possible, followed by more downside toward the end of October to $60,000, before dropping down to the $57,000 range.

A liquidity grab of around $57,000 also coincides with the “golden zone,” serving as one of the key support zones to watch.

Bitcoin remains in “no-man’s land”

As highlighted before, Bitcoin is currently consolidating between a price range of $62,600 and $61,800 on the 4-hour chart. A break above $62,600 may further validate an uptrend that will remain in line with its high timeframe (HTF) bullish structure.

Additionally, if Bitcoin closes above $62,600, it will also reclaim a bullish position above the 50-day EMA level, which should further strengthen a move above $64,000.

Meanwhile, Rekt Capital, an independent analyst, believes that the weekly chart is finding resistance at $64,200, but it is very close to challenging the top of a descending channel and exhibiting a higher high move. However, the trader maintains a neutral stance, stating,

“But at the moment, BTC is mid-channel, in no man’s land.”

Considering all the above factors, there is still a probable chance that Bitcoin will drop down to $60,000 in the next few days.

While an immediate bounce from the demand zone at $60,000 will be bullish, further sideways movement and consolidation near $60,000 will increase its chances of dropping between $57,500 and $54,000.

As Cointelegraph reported, several potential price triggers are in play through October.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.