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Bitcoin Price Prediction: BTC poised to retest $56,000

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  • Bitcoin price is headed lower after a break below a critical support trendline.
  • The leading cryptocurrency exposed to a downside target at $56,568.
  • The IOMAP model suggests that the leading cryptocurrency is unlikely to fall below $56,000.

Bitcoin price has been on a downtrend after reaching its all-time high on October 20. The leading cryptocurrency could slide further towards $56,000 to retest critical support levels after investors engaged in profit-taking.

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Bitcoin price is at risk of a 7% drop.

BTC’s price fell below a crucial support trendline on October 22, exposing it to further downside risk. With the leading cryptocurrency having broken through the lower boundary of the prevailing parallel ascending channel pattern, it could now test key support levels.

The price of Bitcoin will find immediate support at the moving average on the 4-hour chart at $59.452. Before declining towards the bearish target indicated by the governing technical pattern at $56.568. Which additionally coincides with the 61.8% Fibonacci retracement. The Momentum Reversal Indicator (MRI) showed a support line, indicating the strength of the line of defense at this level.

The IOMAP model suggests that the Bitcoin price will hold above $56,000.

According to the IOMAP model, the Bitcoin price is likely to remain above $66,000, with the largest address pool, comprising 1.26 million addresses, buying 652,680 BTC at an average price of $56,079.

As a result, if a surge in buy orders emerges, Bitcoin price will face resistance at the 78.6% Fibonacci retracement at $61,188. Additional headwind will appear at $62.442, where the 21-period and 50-period SMAs on the 4-hour chart converge.

In the event the bulls manage to control the markets to allow BTC to resume its upward trend, the parallel channel downtrend line at $63,057 will also act as a headwind for Bitcoin price. If the leading cryptocurrency cannot escape above this level, it may continue to consolidate until additional directional bias is revealed.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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