(Kitco News) – Bitcoin's (BTC) price continued to slide lower on Monday after King Crypto failed to break through resistance at $66,000 on Sunday afternoon, sparking a sharp selloff that carried into the start of the trading week.
Analysts at Secure Digital Markets noted that Bitcoin found strong support at the 63k level despite the pullback.
“This price action highlights the market’s resilience and the likelihood of continued upward momentum,” they said.
The analysts pointed to key employment data this week, with the JOLTS report set for release on Tuesday and the Non-Farm Payrolls report for September on Friday morning. “Strong labor market data would signal that the economy remains robust, easing concerns about a potential recession,” they said. “On the other hand, weaker data could shift sentiment, raising questions about whether rate cuts are driven by economic weakness rather than just the easing of inflationary pressures, which could introduce more uncertainty for investors.
They also noted significant inflows into U.S.-listed crypto ETFs. “Bitcoin-focused ETFs drew in an impressive $494.4 million, with ARK leading the charge with $203.1 million in inflows for the second day in a row,” they wrote. “Ethereum ETFs also saw notable activity, bringing in $58.7 million, largely driven by Fidelity’s $42.5 million inflows.”
The analysts said that Bitcoin is well-positioned to finish September with a 9% gain, “bucking the trend of historically negative returns for the month, which has only seen positive performance twice since 2013.”
“As we look ahead, October has traditionally been a favorable month for Bitcoin, showing just two negative months in the past decade,” they noted. “With the current macro environment characterized by a more dovish monetary policy, increased institutional inflows, and bipartisan support for cryptocurrency regulation in the U.S., the stage seems set for a continued rally, potentially pushing BTC toward its previous highs near $70,000.”
“Bitcoin did follow the plan,” said Michaël van de Poppe, founder and CEO of MN Trading in an X post. “Took the liquidity above the recent highs, and is coming back down.”
“I think we're in a new uptrend, which means that dips are for buying,” he added. “In that sense, if we get a retest at $60.5-61.3K, I'm interested before we test the ATH.”
At the time of writing, Bitcoin trades at $63,446.57 for a loss of 3.33% on the 24-hour chart.
