Bitcoin's fall to the US$60,000 support zone, as well as many other important technical factors, was a strong indicator of reduced volatility in the coming days and weeks.
Bitcoin rallied to $66,600 on September 27, but market #optimism quickly faded as escalating geopolitical tensions in the Middle East and concerns about the strength of the U. S. economy reduced risk appetite.
From Sept. 27 to Oct. 4, #bitcoin fell 9.94 percent from its peak to its low, indicating cautious sentiment among spot investors at high levels.
#Bitfinex analysts suggested that buyers may still be looking to consolidate large volumes of bitcoin at lower prices.
The market saw a healthy rebalancing when bitcoin was down for the fourth consecutive day since early August.
As a result, Bitfinex reported that open interest in bitcoin dropped from $35 billion to a more stable $31.8 billion.
In addition, more than $450 million of long positions were liquidated as a result of the Oct. 1 drop, indicating that the market has largely entered an uptrend.
Such liquidation volume, which far exceeds the price drop, indicates that the #cryptocurrency market is taking leveraged long positions as it has passed the critical technical and psychological level of $65,000, analysts wrote. The report said the market was strongly supported by positive U. S. labor statistics in September and October, and with the U. S. Federal Reserve expected to cut interest rates again in November, broader risk optimism should return.
The report said bitcoin's recent rise to $62,650 indicates the return of aggressive spot buying.
However, analysts said it was too early to draw "definitive conclusions" about the market's short-term direction.
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