Bitcoin Faces Key Resistance: Key Factors Driving A Potential Surge In 2024
- Bitcoin faces resistance at key levels, with analysts cautioning that a breakdown below support may trigger a bearish trend.
- U.S. election and rising Trump support could influence Bitcoins price, as historical trends suggest potential gains.
- Daan Crypto Trades highlights BTCs strength, holding above bull market support, signaling potential upside movement.
Bitcoin faced a resistance at a significant level after experiencing an upsurge to try and close a CME gap. Crypto analyst Crypto Rover pointed out in his YouTube video that BTC has been unable to break through a previous range high that has now become a wall. This level has on several occasions provided the force against which BTCs price has been repelled, raising questions about the cryptocurrencys near-term dynamics.
In his analysis, Rover pointed out that Bitcoin is currently trading above a key support level. This level has been a significant level of resistance in the past but now becomes the level of support. If BTC price slides below this level, a downward trend may follow, but as long as the price is still trading above this level, the path to the upside remains open.
Source: Chart by Crypto Rover
U.S. Election Impact on Bitcoin
This is crucial because the U.S election is around the corner as the technical patterns are developing. Traditionally, election years have been marked by significant gains in the price of Bitcoin, and as Trumps poll numbers improve, some are pointing to Trump as a factor in the price of cryptocurrency. In the future, if Trump gets more political support, he may help jump start the crypto market.
Source: Image by Polymarket
In addition, there are extra factors which affect the market sentiment like the FTX bankruptcy settlement for instance. The current market has seen a fresh injection of confidence as $16 billion is set to be returned to the holders of cryptocurrencies.
Daan Crypto Trades has also given his take on the current BTC price movements. In a recent X post, the analyst pointed out that Bitcoin has remained above the bull market support band for another week. He pointed out that this is a major signal of Bitcoins strength during its consolidation period. This is the first time since May that Bitcoin is able to hold above this level on a weekly close basis for three consecutive weeks, which is why this is a key level to watch.
Bitcoins Rising Market Strength
This is because Bitcoins strength relative to stocks has risen over the past week, thereby showing that the cryptocurrency is not affected by the traditional market volatility. But he underscored the fact that the bulls must force the ball higher from here and that the longer the price range-bound, the higher the risk of a bearish break.
If, however, the bulls gain control of the cryptocurrency market, Bitcoin can break through the resistance and may signify the beginning of the next leg up. The current prices of cryptocurrency are still ranging within a potential bull flag and this implies that any break could present a risk of steep price rise in the following week. As of press time, BTC is trading at $62,403.03, down by 1.10% over the past day.
Source: TradingView
The price of Bitcoin is trading sideways, which leads to speculation that the cryptocurrency is about to explode. Whether the upcoming U.S. election will trigger the same remains to be seen, but traders are getting ready for what could be the beginning of a new bull market for Bitcoin.
Read more: https://www.tronweekly.com/bitcoin-faces-key-resistance-key-factors-drivin/
Text source: TronWeekly
