Bitcoin (BTC) Price Could Hit a New ATH Soon—But Will It Dip Before Surging? Expert Analysis

Bitcoin's market performance in October has turned heads as the crypto trades above previous resistance levels. Analyst Zen shared a detailed outlook

Cryptocurrency prices have experienced significant volatility in recent times, with Bitcoin (CRYPTO: BTC) displaying a strong rally throughout October. As the month nears its end, several analysts have been closely monitoring BTC’s price action to gauge its potential trajectory.

One such analyst, known as Zen, recently shared their perspective on BTC’s price movements, highlighting the possibility of a new all-time high (ATH) on the horizon. However, the analyst also suggests that a price dip might precede this anticipated surge.

In their analysis, Zen points out specific price ranges and chart patterns that could indicate a potential dip before a breakout. They also utilize Fibonacci retracement levels to identify a possible support zone.

Here's a summary of their analysis and observations:

- A Strong October Candle: On the monthly chart, BTC's October candle is notably positioned above March's closing level of $71,363. This breakout signal, if sustained by a close at current levels, could indicate a bullish trend.

- Anticipating a November Breakout: A close examination of Bitcoin's price movements reveals a gradual yet persistent attempt to break through higher resistance levels. This observation aligns with previous bullish cycles, suggesting the potential for a continuation in this price behavior, leading to an anticipated breakout in November.

- Fibonacci Analysis for Dip Zone: To identify a potential dip range, the analyst applied Fibonacci retracement, marking the 0.618 – 0.786 levels on a 1-hour chart. This translates to roughly $67,793 to $70,358. The analysis suggests that BTC could experience a brief pullback within this zone before resuming its climb.

- Key Support and Resistance Levels: Throughout the analysis, several key support and resistance levels were highlighted. These include March's close at $71,363, serving as a critical level for maintaining a bullish outlook.

- On the lower end of the support spectrum, liquidity pools are concentrated around $71,150, $70,444, and $69,300, offering potential buffers against deeper dips.

- On the resistance side, Bitcoin's ATH near $73,881 presents a psychological hurdle, with intermediate liquidity clusters at $73,108 and $73,597. These levels are crucial in determining BTC's continued rally.

- CME Gap and Historical Patterns: Adding depth to their analysis, the analyst mentions a CME gap on the 1-hour chart, ranging from $67,435 to $68,185. This gap aligns with the 0.5 – 0.618 Fibonacci range.

- Although the analyst typically disregards lower timeframe gaps, they note that the correlation with the Fibonacci retracement here increases the probability of a pullback to these levels.

- Historical performance also lends context; the analyst references Bitcoin's 2019 spring movement when it advanced without a retracement, leaving open the possibility for a similar pattern here.

- However, the suggestion of a potential buy tail indicates the likelihood of a controlled dip before the anticipated breakout.

If Bitcoin sustains its current trend and closes October in this range, the analyst suggests that a November breakout could be on the cards. However, traders should be prepared for a potential dip within the $67,800 to $70,400 range, which could present buying opportunities.