After encountering the key psychological resistance level of 70,000 USD on Monday, Bitcoin price fell by 2.3% on Tuesday. As of Wednesday, the Bitcoin price has slightly decreased to around 66,722 USD.
If BTC continues to pull back, it may fall further and re-test the next psychological support level of 66,000 USD.
The Relative Strength Index (RSI) on the daily chart is at 58, pointing down after breaking above the overbought level of 70 on Sunday, indicating a weakening bullish momentum. If it continues to fall and closes below the neutral level of 50, it could lead to a significant drop in Bitcoin price.
After several attempts to test 66,500, how will it move next?
Clearly, BTC is experiencing a chip exchange in the range of 60,000-69,400, where low-price chips are being exchanged for high-price chips. In simple terms, chips in the 60,000-66,000 range are being sold in the 66,500-69,400 range and are being bought. Additionally, from the K-line perspective, the current price is stable above 66,500, and once the price approaches 66,500, it is being absorbed by buy orders.
In the range of 66,500 to 67,200 and 68,000, there has been a few days of fluctuation. Both bulls and bears seem to have reached a balance here, waiting for new emotions and information to break this balance.
Next, this week's macro data includes the final consumer confidence index from the University of Michigan on Friday. There are no market makers over the weekend, and liquidity is more sluggish. Additionally, next week's macro data PCE, as well as earnings reports from MSTR and COIN, and the upcoming US elections will all stimulate BTC price fluctuations. Of course, among the events mentioned that stimulate emotions, positive sentiments are more prevalent. Even negative sentiments are only temporary; however, if negative sentiments appear, the price will definitely test the lower position of 65,800.
Once emotions drive funds into buying after breaking 72,000, it will be a new high on top of a new high. At that time, don't FOMO too much.
Lastly, let's talk about altcoins.
Bitcoin is currently moving in a narrow range of fluctuations, we need to wait and try not to make left-side trades, but rather wait for clear designated signals to appear before making a new market judgment.
Also, keep an eye on when Ethereum becomes strong; currently, after breaking 2700, it has been declining, unlike Bitcoin which has been holding steady, it is still showing weakness.
Bitcoin is in a critical period for both bulls and bears; I maintain a cautious attitude towards altcoins.
Currently, there are still no signs of any altcoin narratives; the only gambling point in the market is the election.
Regardless of who wins the election, it is positive for BTC. The price of BTC is likely to break new highs, but how far it goes depends on who is elected. If Trump is elected, the upper limit will be higher; if Harris is elected, the upper limit may be lower. There are 14 days left until the election! Let’s wait and see.
