BTC/USD Faces Rejection at $63k as Bitcoin Risks Further Decline- October 31, 2021
Today, the second uptrend at the $63,000 resistance was interrupted as Bitcoin falls from the recent high. The cryptocurrency fell to the support above the $60,400 price level as bulls buy the dips. After falling from $62,400 to $60,400, BTC/USD has resumed another upward move. The resumption of the bullish momentum is for buyers to clear the resistance levels of $63,000 and $64,000. However, if the bulls fail to resume upward and price breaks below the $60,000 support, Bitcoin will decline to a $57,400 low. The bulls are facing an uphill task as bears continue to provide stiff resistance at the recent high. Nonetheless, the bears are threatening to break below the $60,000 support. The selling pressure may resume if the current support cracks.
Americans Reinvest Stimulus Checks in Bitcoin
In the United States, an average American taxpayer received three rounds of stimulus checks from the government. Many Americans have used the opportunity to invest in Bitcoin. The government has increased consumers’ spending potential to reignite the economy. According to reports, the second stimulus check of $600 was distributed in December 2020 and January 2021. The report has it that Bitcoin achieved an all-time high of $65,000, two months after the stimulus was granted. If it was reinvested in Bitcoin, the second check would return a profit of 152% (approximately $312). As of March 2021, the third stimulus check was set at $1,400, which was given to eligible taxpayers. However, Bitcoin underwent a three-month-long bearish market. The bearish market affected the reinvestment of the third stimulus check in Bitcoin. This attracted a return of a modest 7% or $98 in profit at the time of writing.
Today, BTC/USD has fallen as bears attempt to breach the $60,000 price level as Bitcoin risks further decline. Meanwhile, on October 30 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that Bitcoin will fall to level 1.618 Fibonacci extension or $59,377.10
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