Bitcoin Nears $80,400 Support; Break Below Could Mark Shift to Downtrend
Summary
- Bitcoin's hold above $80,400 support, the lower end of its recent three-week trading range, could determine its next direction.
- Bitcoin's structural indicator fell from 0.37 to -0.32, suggesting it has left bullish territory but remains in a neutral zone.
- If the price falls below $80,400 and the structural indicator drops under -0.5, it could mark a shift into a downtrend, while a recovery in the futures supply-demand indicator above 50 could be an early sign of renewed buying interest.
Forecast Trend Report by Period
Bitcoin is nearing the lower end of a three-week trading range, with whether it holds support at $80,400 likely to determine its next move, according to an analysis.
On Oct. 20, on-chain analyst Axel Adler Jr. wrote in a newsletter that Bitcoin had fallen about 6% from $86,700 on Oct. 2 to $81,600 on the day.
Adler identified $80,400 as the bottom of the trading range formed over the past three weeks. As long as Bitcoin holds that level, the move can still be viewed as a correction following last month's rally.
A structural indicator tracking Bitcoin's price action has also fallen to -0.32 from 0.37 a week earlier. That means the token has left bullish territory, but remains in a neutral zone because it has not yet dropped below the bearish threshold of -0.5.
Selling pressure still dominates the futures market. A futures supply-demand indicator cited by Adler has remained below 50 since Oct. 17, signaling seller control. It briefly approached 50 on Oct. 19 before falling back to 46.
Adler wrote that the current correction could begin to shift into a downtrend if Bitcoin falls below $80,400 and the structural indicator drops under -0.5. By contrast, he added that the futures supply-demand indicator recovering above 50 would be an early sign that buying interest is returning.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.