Bitcoin Holds Support, Bounces to $61.4K

A potential technical breakdown would expose a support level near $54,000.

Oct 27, 2021 at 5:53 a.m. UTC
Updated Oct 27, 2021 at 2:58 p.m. UTC

Bitcoin looks to regain poise during overnight trading, after it avoided a short-term bullish-to-bearish trend change with the help of a crucial support level.

  • The top cryptocurrency by market value is trading near $61,400 at press time, representing a 1.4% gain on the day.
  • While prices fell by 4.3% on Tuesday, sellers failed to break the support level near $59,800 and confirm a “head-and-shoulders” breakdown on the four-hour chart.
  • Chart analysts consider a head-and-shoulders breakdown as a bearish signal. The pattern often yields an extended sell-off to the downside.
  • A potential head-and-shoulders breakdown on the four-hour chart would expose support near $54,000.
  • Resistance is seen at $63,700, which was the high on Monday. A higher break could take bitcoin to record highs.

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Omkar Godbole is the senior reporter on CoinDesk's Markets team.