Bitcoin traders eye critical resistance amid rising bond yields and the dollar.
Key levels near $69,500 could determine the possibility of a Bitcoin breakout.
Employment data and Fed signals add further pressure, with traders watching for support around $66,000 Bitcoin's rally from September lows to fresh highs last week, with the digital currency briefly rising near $69,500.
This rally was indicative of a strong breakout from the bearish consolidation, but this week has seen quieter price action as fresh liquidity and rising bond yields create headwinds.
Bitcoin traders are now looking to critical resistance levels and key drivers such as the upcoming US elections and employment data, which could shape the market’s next move.
Last week’s rally has brought the cryptocurrency back to critical resistance, with the cryptocurrency flirting with a breakout above $69,500. Political developments, including the possibility of Trump’s re-election, are starting to weigh on sentiment.
Trump’s pro-crypto stance could provide a bullish spark; however, his policies to strengthen the dollar could reduce Bitcoin’s appeal.
Conversely, a win for Harris, who is inclined to regulate cryptocurrencies, could foster a more stable regulatory environment. Either way, the election outcome promises to impact Bitcoin’s medium-term outlook.
Market Watch: Bonds, Dollar Strength, Employment Data
This week has also seen Bitcoin struggle with rising bond yields and a stronger dollar, which has intensified pressure at key resistance levels.
US jobs data, particularly non-farm payrolls, could further influence Fed policy and impact Bitcoin’s trajectory. Strong jobs data could delay interest rate cuts, making the dollar’s yield attractive and limiting liquidity in riskier assets like Bitcoin.
Meanwhile, weaker employment figures could prompt the Federal Reserve to cut interest rates sooner, which could lift Bitcoin in the short term but could raise fears of a broader recession that could slow crypto investment.
Geopolitical risks and market liquidity
Geopolitical risks remain an important factor. Tensions in the Middle East have eased, but any escalation that impacts global markets could impact Bitcoin prices.
Additionally, open positions in the crypto futures market hit new highs last week, adding to the volatility. This dynamic, coupled with fresh liquidity withdrawals, has contributed to Bitcoin’s slight decline this week.
Bitcoin Technical Picture: Key Levels to Watch
Bitcoin continues to test the upper boundary of the BTC descending channel, currently facing strong resistance around the $67,000 level. A decisive close above this level could pave the way towards $70,000 before the elections.
The daily chart indicates a crucial support range at $65,600 – $65,950, with a risk of a breakdown that could lead to a pullback to $64,400 or even $62,600.
However, if Bitcoin maintains its momentum above $66,000, the bullish sentiment could push it towards $72,200 or higher, which could push it into the $75,000-79,000 range on continued buying.
