Bitcoin faced resistance at the key psychological level of 70,000 dollars on Monday, dropping 2.3% on Tuesday. As of Wednesday, the Bitcoin price slightly fell to around 66,722 dollars.
If BTC continues to pull back, it may fall further and retest the next psychological support level of 66,000 dollars.
The Relative Strength Index (RSI) on the daily chart is at 58, having pointed downwards after breaking through the overbought level of 70 on Sunday, indicating a weakening bullish momentum. If it continues to drop and closes below the neutral level of 50, it may lead to a significant decline in Bitcoin price.
After several tests at 66,500, how will it proceed next?
It is clear that BTC is shifting chips in the range of 60,000-69,400, with low-priced chips being exchanged for high-priced ones. In simple terms, the chips in the 60,000-66,000 range are being sold in the 66,500-69,400 range and are being bought up. Additionally, from the candlestick chart, the current price is stable above 66,500, and once the price approaches 66,500, it is being bought up.
In the range of 66,500 to 67,200 and 68,000, there has been some fluctuation for a few days. Both bulls and bears seem to have reached a balance here, waiting for new sentiments or information to break this balance.
Next week, macro data such as the final value of the Michigan University Consumer Confidence Index on Friday will be released. There are no market makers over the weekend, leading to lower liquidity. Additionally, next week's macro data like PCE, as well as earnings reports from MSTR and COIN, are coming up, along with the approaching U.S. elections. These messages will stimulate sentiment and affect BTC price fluctuations. Of course, among the events mentioned that stimulate sentiment, the positive sentiments are more prevalent. Even negative sentiments are only very short-lived; of course, when negative sentiment occurs, it will definitely test the lower level of 65,800.
Once the sentiment drives funds to buy in and breaks through 72,000, it will be a new high of a new high. At that time, do not FOMO too much.
Two aspects of altcoins can be focused on:
1. In the gaming sector, most tokens launched on a certain platform since the end of last year are from the gaming sector. However, during the first wave of altcoins at the beginning of the year, the gaming sector hardly made a move. After more than half a year of cleaning, the highs have dropped nearly 90%, and it is starting to gain some momentum now.
2. The MEME sector started with the hype around various animals like frogs, hippos, BOME, etc., and now it has shifted to AI + MEME. There is a high probability that MEME will run throughout the entire cycle.
Apart from memes, the public chain performance is acceptable, and Sol is also the absolute leader here, being one of the few projects that can rise against BTC in this wave. Tia, ICP, Tron, and ADA are also performing well, while most altcoins are basically in a downtrend. In short, the market is not yet fully a bull run for altcoins. I still believe Q4 will see a big movement; let's all look forward to it.
