Bitcoin has fallen 2% from its seven-month high of $73,750 after a major rally. The rally followed a $500 million inflow into ETFs and growing optimism surrounding the election of BTC proponent Donald Trump. Bitcoin is currently trading below $70,000 but is expected to rally back above $72,000 and hit a new ATH in the coming weeks.
Bitcoin Drops Below $70,000 – Still Expecting New All-Time Highs
The current price movement of Bitcoin shows a promising rally that could take this asset to new highs by the weekend.
Currently, Bitcoin has dropped below $70,000 after a week of stability above $72,000, following China's announcement of a $140 billion economic stimulus package, along with the U.S. Federal Reserve cutting interest rates.
Traditionally, such liquidity increases have driven asset profits, and Bitcoin's price volatility reflects this as prices recover after the profit-taking earlier this week.
Technical indicators show a strong bullish trend as Bitcoin recently broke out of a descending wedge pattern - a reversal signal that often predicts upward momentum.
Holding support around $66,000 at the beginning of the week, BTC rose to retest $72,150, aiming for the previous high of $73,750. However, the surge reversed as BTC entered a price correction phase, which may only last through the weekend.
If Bitcoin breaks through this key resistance level and maintains its growth momentum, forecasts estimate the price could rise to around $78,900.
Meanwhile, demand for Bitcoin remains high, supported by significant ETF capital inflows. Just this week, U.S.-based ETFs reported inflows of $500 million, primarily due to interest from institutional player BlackRock.
As the U.S. presidential election approaches on November 5, some analysts suggest that BTC has the potential to rise, especially as candidates from both sides appear open to cryptocurrency.
However, even if Bitcoin reaches an ATH, that does not necessarily mean huge profits for regular investors.
If you are looking for greater profits and do not have millions of dollars invested in BTC, participating in these pre-sales could yield more returns.