Coin World reported:
After encountering key psychological resistance at $70,000 on Monday, the price of Bitcoin fell 2.3% on Tuesday. As of Wednesday, the price of Bitcoin had fallen slightly to around $66,722.
If BTC continues to retreat, it may further decline and retest the next psychological support level of $66,000.
The Relative Strength Index (RSI) indicator on the daily chart is 58, pointing downwards after breaking the overbought level of 70 on Sunday, indicating a weakening bullish momentum. If it continues to decline and closes below the neutral level of 50, it may lead to a significant drop in the price of Bitcoin.
After several tests at 66,500, what’s next?
It is evident that BTC is undergoing chip turnover in the range of 60,000-69,400, with low-priced chips being exchanged for high-priced chips. In other words, the chips in the range of 60,000-66,000 are being sold in the range of 66,500-69,400 and bought up. Moreover, from the perspective of the candlestick chart, the current price is stable above 66,500, and once the price approaches 66,500, it is immediately bought up.
There has been a consolidation in the range of 66,500 to 67,200 and 68,000 for several days. It seems that both bulls and bears have reached a balance here, waiting for new emotions and information to break this balance.
Next week, macro data such as the final value of the University of Michigan Consumer Confidence Index on Friday will be released. There will be no market makers over the weekend, resulting in lower liquidity. In addition, there will be macro data such as PCE, as well as the financial reports of MSTR and COIN, and the upcoming U.S. election. These news events will stimulate price fluctuations in BTC. Of course, among the events mentioned above that stimulate emotions, there will be more positive emotions. Even if negative emotions occur, they will only be short-lived. Of course, when negative emotions appear, the price will definitely probe below the position of 65,800.
Once emotions drive funds to buy and break through $72,000, it will be a new high. At that time, do not be too FOMO.
Finally, let’s talk about altcoins.
Currently, Bitcoin is oscillating within a narrow range. We need to wait and try not to engage in left-side trading. Instead, wait for clear signals to appear before making a new market judgment.
At the same time, pay attention to when Ethereum will rise in strength. Currently, after breaking through 2700, it has been declining, unlike Bitcoin, which is relatively weak.
Bitcoin is in a critical period for both bulls and bears, and I remain cautious about altcoins.
Currently, there are still no signs of altcoin narratives. The only game in the market right now is the election.
Regardless of who wins the election, it will be positive for BTC. The price of BTC is likely to break through to new highs, but where it will go depends on who is elected. If Trump is elected, the upper limit will be higher, and if Harris is elected, the upper limit may be lower. There are 14 days left until the election! Let’s wait and see.