Coin World reports:
After encountering a key psychological resistance level of $70,000 on Monday, the price of Bitcoin fell 2.3% on Tuesday. As of Wednesday, the price of Bitcoin has 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) on the daily chart is at 58, pointing downwards after breaking through 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 result in a significant drop in the price of Bitcoin.
After several attempts at the bottom of $66,500, what’s next?
It is evident that BTC is undergoing chip turnover in the range of $60,000 to $69,400, with low-priced chips being exchanged for high-priced chips. In other words, the chips in the range of $60,000 to $66,000 are being sold in the range of $66,500 to $69,400 and being bought up. Additionally, 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 absorbed by buy orders.
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, next week there will be macro data such as PCE, as well as financial reports from MSTR and COIN, and with the approaching US election. These news events will stimulate BTC price fluctuations. Of course, among the mentioned events that stimulate emotions, there are more positive emotions. Even if negative emotions occur, they will only be short-lived, but if negative emotions appear, the price will definitely test the lower position of $65,800.
Once emotions drive funds to buy and break through $72,000, it will be a new high. At that time, be careful not to be too FOMO.
Finally, let’s talk about altcoins.
Currently, Bitcoin is trading in a narrow range and 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 become strong again. Currently, it has been falling after breaking through $2,700, 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 no signs of any altcoin narratives. The only variable in the market right now is the election.
Regardless of who wins the election, it is positive for BTC. The price of BTC is likely to break through 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.
