Bitcoin dipped to $65,521 from a high of $68,722, reflecting a 5% loss influenced by Tether’s scrutiny.
Currently, Bitcoin has bounced back to $67K amid ongoing volatility.
The global crypto market is heating up with various news, that led Bitcoin (BTC) to dip to $65,521 from the high of $68,722. This 5% drop followed reports from the Wall Street Journal claiming that Tether, a major player in the crypto space, is under investigation by U.S. authorities. Tether and its CEO quickly dismissed the claims, labeling them as “regurgitating old noise,” but the damage was done, affecting market sentiment significantly.
As Bitcoin fell, other major cryptocurrencies also took a hit, leading to a 10% decrease in daily trading volume across the global market. This slump triggered widespread liquidations in crypto derivatives markets, with a total of 139,577 traders wiping out $391 million over the past 24 hours. Most notably, $325 million of this was related to long positions, just as Bitcoin was approaching the $69,000 mark prior to the Tether news.
Further complicating matters, reports of an Israeli missile strike on Iran added to the market’s unease, showcasing how geopolitical tensions can ripple through crypto prices.
Analyzing Bitcoin’s Current Price Action and Volatility
Despite these setbacks, Bitcoin’s weekly performance reflects a modest decline of only 2%, having tested the $69,519 level on October 21. On a positive note, Bitcoin is still up about 5% for the month, rebounding from a dip to $59,500 earlier in October. At the time of writing, BTC was priced at $67,039.
Zooming in, the 4-hour BTC/USDT technical analysis shows increased volatility, with the RVI at 50. Additionally, the BBPT indicates bullish potential at levels 1.92 and 2.00, while the low bearish threshold of 0.08 and a trend value of 0.67 suggest a cautious, low-volatility environment. For bulls to regain control, Bitcoin’s volatility must decrease.
Meanwhile, the RSI is at 51, reflecting a neutral market position where neither bullish nor bearish momentum is clearly prevailing, as per TradingView data.
Overall Outlook: Bitcoin could see slight upward momentum if it breaks through resistance levels at $67,250 and $68,220. However, with the current neutral RSI and mixed signals from the BBPT, the price may also remain range-bound until stronger bullish or bearish indicators appear. A breakout above the bullish levels could facilitate upward movement, whereas a drop below the support level of $66,150 may lead to increased selling pressure.