Bitcoin Price Forecast: BTC Heading For $60,000 But Bulls Must Hold $55,000 Supply Zone

John Isige
October 7, 2021
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
bitcoin
  • Bitcoin price nearly breaks above $56,000 but retreats to affirm higher support around $55,000 before resuming the uptrend.
  • A falling Bitcoin supply on exchanges could quickly bolster the price above $60,000 as selling pressure fades.

Bitcoin has kept its October winning streak Intact. Although the bellwether cryptocurrency suffered delays at $51,800, leading to a minor setback, bulls almost immediately regained control, pushing for gains above $55,000 (the critical supply zone marked in red on the daily chart).

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Bitcoin Price Stalls Short Of $56,000

The flagship cryptocurrency exploded above the supply zone and closed in on $56,000 before the bullish momentum faded. A minor correction occurred as BTC sought the support of around $55,000.

Bitcoin must stay above the red zone to annihilate the building overhead pressure. Holding within the supply area will also keep the uptrend intact.

Meanwhile, Bitcoin’s daily time frame is still bullish, with the Moving Average Convergence Divergence (MACD) having crossed above the mean line. A buy signal sent toward the end of September has also been sustained, adding credibility to the optimistic outlook.

At the same time, BTC’s move above $55,000 proved that buyers have what it takes to close the gap to $60,000. The consistent bullish action implies that the micro downtrend experienced in August is finally over, and the market could be gripped with the fear of missing out (FOMO), where investor risk appetite expands significantly.

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BTC/USD Daily Chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Bitcoin’s supply on exchanges continues to diminish as the price roars toward $60,000. On-chain data by Santiment highlights that only 2.42 million BTC is available on known exchange wallets compared to a three-month high of 2.55 million.

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Bitcoin Supply On Exchanges

Bitcoin exchange supply chart
Bitcoin exchange supply chart by Santiment

As supply on exchanges dwindles, selling pressure goes down. This shows that investors are deciding to hold amid speculation that the price will move higher. Hence, with reduced overhead pressure, Bitcoin gains momentum to rally, as shown in the chart. Therefore, the largest cryptocurrency must be better positioned to make a higher move than correct below $50,000.

Bitcoin Intraday Levels

Spot rate: $54,900

Trend: Short-term bearish bias

Volatility: Low

Resistance: $56,000

Support: $54,000

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.