Bitcoin is now navigating two crucial support levels after bouncing back from 10-day lows. On Oct. 24, Keith Alan, co-founder of Material Indicators, highlighted an old resistance level from April 2021, which is now acting as support.
The $65,000 mark has become a key level that Bitcoin must hold. After reaching $69,000 for the first time since the summer, Bitcoin faced a retracement, but sellers were unable to maintain control for long. Following the Oct. 23 Wall Street open, a surge in stop-loss orders caused a brief acceleration of the downward momentum, taking BTC/USD down to $65,000 — its lowest point since Oct. 10. However, a quick rebound brought the price back above $67,000.
In doing so, Bitcoin managed to stay above the 21-week simple moving average (SMA), currently at $62,700. Alan noted that avoiding any dips below this level would indicate that the short-term uptrend remains intact. This recent low also aligned closely with Bitcoin’s old all-time high from April 2021, which was $64,950 on Bitstamp, rather than the higher peak in November that year.
“Thursday brought us a solid test of the Mid-Cycle Top, and now it’s closely correlated with the 21-Week MA,” Alan said, adding, “Let’s see if BTC can hold above that technical support through the weekly close.” His chart highlighted key areas of interest and trading signals provided by Material Indicators’ proprietary tools.
With the US presidential election and a Federal Reserve interest rate decision looming in two weeks, risk markets, including crypto, expect heightened volatility.
Further complicating matters, upcoming macroeconomic data, such as the Oct. 24 Purchasing Managers’ Index (PMI) and weekly jobless claims, may also impact BTC price action. Material Indicators warned that a “hot Jobless Report” could trigger a market reversal and invalidate the latest bullish signals if Bitcoin falls below $65,000.
Meanwhile, some traders remain optimistic. “Stop losses and liquidations hit, we even went a bit lower due to slippage mostly,” trader CrypNuevo posted, expressing hope that the price action will stabilize as support is regained.
