Technical Analysis

BTC/USD Analysis – October 27, 2021

By LonghornFX Technical Analysis
Oct 27, 20213 min

Bitcoin Price Prediction

On Wednesday, the BTC/USD pair continued trading with a selling bias at 60,260 levels amid mixed fundamentals. CNBC has heard that Mastercard is set to announce that any of the hundreds of banks and millions of merchants on its payments network will soon be able to integrate cryptocurrency into their goods. This includes bitcoin wallets, credit and debit cards that generate cryptocurrency rewards and allow digital assets to be spent, and loyalty schemes in which airline or hotel points may be turned into bitcoin.

In the past, the popular prediction model has been astonishingly accurate in anticipating Bitcoin's bearish and bullish cycles against its rising scarcity. Bitcoin (BTC) reached a fresh high of $67,000 last week, raising the prospect of reaching $100,000 by the end of the year. PlanB, the popular Bitcoin Stock-to-Flow (S2F) model developer, referred to Bitcoin's price retreat from the $60,000 level as the "second leg" of what appeared to be a long-term bull market.

In doing so, the anonymous analyst cited S2F, which predicts Bitcoin will continue its upward trend and reach $100K to $135K by the end of the year. The price projection model asserts that Bitcoin's worth will continue to rise until it reaches at least $288K per token due to the "halving," an event that occurs every four years and decreases BTC's issuance rate by half against its 21 million supply cap.

Notably, Bitcoin has had three halvings so far: in 2012, 2016, and 2020. Each occurrence reduced the cryptocurrency's fresh supply rate by 50%, followed by significant gains in BTC price. For example, the first two halvings caused the price of Bitcoin to surge by almost 10,000 percent and 2,960 percent, respectively.

The third halving increased the price from $8,787 to as much as $66,999, a 667.50 percent increase. So far, S2F has been fairly correct in projecting Bitcoin's price trajectory, as demonstrated in the chart below, giving bulls increased faith that Bitcoin's post-halving bounce will see its price reach the $100,000 barrier.

BTC/USD Intraday Technical Levels

Support Resistance

60913.99 63975.77

59242.30 65365.14

57851.50 67036.70

Pivot Point: 62303.70

BTC/USD - Technical Outlook

Bitcoin's price fell below $60,000, although the decline was limited. BTC fell as low as $59,610 before resuming its upward trend. The price was able to break through the resistance levels of $61,000 and $61,200.

Above the $62,000 and $62,500 marks, there was a recovery wave. Bitcoin even surpassed the 50% Fib retracement level of the decline from the swing high of $66,980 to the low of $59,610. The price has risen above $62,000 and the 100 hourly simple moving average. It is currently seeing resistance near $63,000 and $63,200. On the hourly chart of the BTC/USD pair, a big negative trend line is forming with resistance near $63,200.

The key barrier for a breakout is currently building near the $64,000 mark. It is close to the 61.8 percent Fib retracement level of the decline from the swing high of $66,980 to the low of $59,610. A decisive break over the trend line resistance and afterward $64,000 may open the door to a move towards the $65,000 mark. The next significant resistance is located near the $66,500 level. All the best!


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