Bitcoin targets $66K as traders brace for market volatility

Bitcoin (CRYPTO:BTC) is facing increased market pressure amid uncertainty surrounding the upcoming U.S. presidential election, as its price recently dropped below $69,000, liquidating $200 million in long positions. 

According to Titan of Crypto, a popular analyst, BTC’s “local bottom” may lie around $66,200, where a rebound could occur. 

"BTC couldn’t close above Tenkan, signaling a possible more profound pullback,” the analyst noted, indicating a potential retest of the $66,200 level.

The recent BTC price movement saw rejection near its all-time high of $73,800, with high market interest pushing open interest levels to record highs. 

Titan of Crypto pointed out that a breakout confirmation could signal a test of the Kijun level, establishing $66,200 as a potential local bottom.

Meanwhile, other analysts suggest Bitcoin is nearing a critical support range. 

Credible Crypto emphasised the importance of the $65,000 to $69,000 area, calling it a “must bounce zone” for BTC, warning of a larger correction if it fails to hold. 

"For now, let's see if we can get this bounce and then we can take it from there," he commented.

Some traders remain optimistic, seeing the dip as a standard retracement within an ongoing uptrend. 

Alan Tardigrade highlighted, “Bitcoin has Pullback onto Fibonacci 0.618 level, which is a common support for a healthy pullback.” 

He added that if Bitcoin holds at this level, another impulsive movement is likely.

Amid these fluctuations, trading firm QCP Capital reported heightened interest in BTC futures and options, with open interest for BTC futures reaching $40.65 billion. 

QCP Capital observed that options markets reflect elevated volatility expectations, with BTC’s 7-day implied volatility at 74.4%, significantly higher than the realised volatility of 41.4%, indicating increased risk amid the election week and the upcoming Federal Reserve rate decision.

At the time of reporting, the Bitcoin price was $68,616.22.