The crypto market has been waiting with bated breath for a rally since the Bitcoin halving event took place in mid-April. However, previous attempts were thwarted by widespread concerns over the state of the US, China and Eurozone economies, and there was even talk of potential recession in August. The fears have since been overcome, save for China, whose economic stimulus plan seems to have done little to avert a decline.
Bitcoin price came within touching distance of its all-time highs (ATH) on Tuesday, after rising to $73,600. That places the ATH as the immediate barrier that the bulls will be pushing to breach. Notably, the current Bitcoin ATH of $73,794 came in March, about a month before the halving event. Therefore, the current upsurge in Bitcoin price is significant, as it could lead to the first post-halving ATH.
A new record price would certainly be a significant sentimental boost by the crypto bellwether. Importantly, the psychological round figure mark of $74,000 wouldn’t be too far from the new ATH. That could potentially trigger a jostle to keep buying BTC. However, for a rally akin to the 2021 era rally to kick in, Bitcoin would need support from outside the crypto market.
Key among these is the outcome of the US presidential elections. A Donald Trump win would certainly be a significant boost to the crypto, given his support for digital assets. Also, institutional adoption of Bitcoin beyond the ETF market could inject a strong impetus.
Acceptance of Bitcoin as a payment method is crucial to expanding its utility, which is currently mostly restricted to a tradeable asset. A key upside for the crypto market is the streamlining of the regulatory environment by governments, unlike in the previous years. That means less disruptions and a stronger traction to stay on the ascending trajectory.
The momentum on Bitcoin price favours the downside if the price action stays above 72,343. That will likely encounter the first resistance at 72,606. However, if the buyers extend their control, the price could break above that barrier and test 73,045.
On the other hand, a move below 72,343 will signal control by the sellers. In that case, initial support will likely come at 72,025. However, an extended downward momentum could break below that mark, at which point the upside narrative would be invalid. Meanwhile, the downside could extend to test the second support at 71,630.
This post was last modified on Oct 30, 2024, 11:41 GMT 11:41