- Bitcoin closed the week at $70,000, marking a nearly 10% rise over the past seven days, with trading volumes up 19% in past 24 hours.
- Technical indicators, such as a bullish weekly RSI and the completion of bull flag patterns, suggest that Bitcoin could break out of its long-term downtrend, with potential targets of $74,000 and even $100,000.
- Around $69,000 has been identified as a current support level, which is crucial for continuing the bullish trend.
- Analysts highlight the upcoming 2024 U.S. elections as a potential catalyst for a year-end rally.
Bitcoin has surged over 10% during the past week, climbing from a low of $62,474 on October 14 to touch close to $70,000 on October 21. This move has been accompanied by a 19% uptick in trading volume over the past 24 hours, which now exceeds $17 billion. This reflects increased market activity and heightened anticipation of a potential bullish phase.
The market sentiment is increasingly tilting toward the possibility of a significant breakout. Crypto analysts and traders point to various technical signals that suggest Bitcoin could test higher resistance levels.
Some crypto market analysts eyeing a move toward $74,000 and possibly even beyond $100,000. These projections hinge on Bitcoin breaking key resistance points, including the critical $69,000 mark, which many see as a threshold for confirming a sustained upward trend.
Notably, analysts like Rekt Capital highlight Bitcoin’s current positioning, with recent commentary emphasizing the potential impact of a strong weekly close.
Rekt Capital wrote on X: “Bitcoin is on the cusp of a bullish Weekly Close that would likely position price for a challenge of the ReAccumulation Range High resistance for the first time since June 2024.”
The analyst further noted that such a close could initiate a breakout from a multi-month downtrend, potentially driving Bitcoin towards at least $70,000.
Adding to this technical analysis, Aaron Crypto pointed out parallels with Bitcoin’s behavior in late 2023, noting a similar bullish signal in the weekly RSI.
“This breakout seems pretty similar to Q4 2023. Now, it’s time for a price breakout. $74,000 is coming sooner than expected,” Aaron wrote on X, drawing attention to the bullish sentiment building within the community.
Broader macroeconomic events could also play a pivotal role in Bitcoin’s near-term trajectory. As the 2024 U.S. presidential elections approach, this period could serve as a catalyst for a year-end rally.
A user on X known as ‘Stockmoney Lizards’ shared historical data suggesting that Bitcoin’s performance in the weeks leading up to previous elections often foreshadowed significant price movements.
According to his analysis, Bitcoin saw gains of over 10% in the run-up to the 2016 and 2020 elections, followed by larger surges post-election.
The potential for a pre-election rally is fueling expectations of a new all-time high, with many traders anticipating a rapid price surge to $74,000 before a more substantial move in November and December. “Confirmation” of this breakout, however, remains a critical concern for market participants who have been waiting for clear signals before committing further.
Key support levels for Bitcoin to sustain a bullish breakout
Despite the bullish narrative, there is a recognition that Bitcoin must maintain key levels post-breakout to confirm its upward trajectory. Analysts caution that failure to hold these levels could lead to renewed volatility or a reversal, emphasizing that a breakout is not without risks.
Additionally, Bitcoin’s rise may be influenced by broader global liquidity trends and the impact of U.S. spot Bitcoin ETFs, which could either bolster or undermine the momentum depending on shifts in the financial landscape.
- Around $69,000 has been identified as a current support level, which is crucial for continuing the bullish trend. If Bitcoin holds above this, it could target higher levels.
- $67,650 is noted as a key level that, if broken, might indicate a local top has not formed yet, suggesting room for upward movement before any significant correction.
- Between $67,000 – $65,500 was mentioned as a good area to add more Bitcoin, indicating strong support zones where the price might bounce back up.
- $66,750 was highlighted as a next critical support level if Bitcoin dips below its current upward channel, suggesting another point of interest for sustaining bullish momentum.
- $60,000 – $62,000 stands out as the “last good support” or a significant level where investors might consider entering or adding to their positions, indicating a strong foundational support for Bitcoin.
The coming weeks will be crucial in determining whether Bitcoin can sustain its current momentum and break into new price territories. While technical indicators and growing market enthusiasm hint at a bullish breakout, the inherent uncertainty of the market serves as a reminder that such moves are never guaranteed.
Read Also: Bitcoin Surges 2.5% to $68415 as U.S. Spot ETFs Hit $20 Billion in Net Flows
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