Can Bitcoin continue to rise? Key resistance level analysis
Brothers, the price of Bitcoin has recently returned to the top of the key resistance level, but can it continue to rise? In the early morning of September 26, Bitcoin once fell to $62,705. Although it has broken through $64,000 for the third time in just four days, the bulls' hopes seem a bit shaky for the time being.
Market changes and macroeconomics
However, as the US stock market opened and the S&P 500 index hit a record high, Bitcoin subsequently rose 3% and returned to the level of $65,000.
The potential for Bitcoin to rise to $70,000 lies in the decline in US interest rates and the renewed attention of long-term institutional investors to Bitcoin.
Recent economic data shows that strong economic growth and news of record high housing prices have reduced market concerns about stock market bubbles. The performance of technology stocks is also constantly driving the market, and well-known companies such as Alibaba, Tesla, and Nvidia have achieved gains of more than 30%.
The relationship between Bitcoin and monetary base
Bitcoin is closely related to changes in M2. Historical data shows that the probability of Bitcoin price increase is as high as 83% during the 12-month period when liquidity increases. In contrast, gold has only been in line with M2 68% of the time in the past 10 years. This means that as governments begin to deploy stimulus measures, the outlook for Bitcoin remains optimistic.
ETF Inflows and Market Confidence
On September 26, the inflow of funds into the spot Bitcoin ETF reached US$242 million in just two days, and investor sentiment is changing. The growth of institutional demand and the recovery of the technology industry provide strong upward momentum for Bitcoin.
Technical Analysis
From a technical point of view, after consolidating in the range of US$62,000-64,000 for a week, Bitcoin began to break upward, and then sang all the way, with the price approaching US$66,000. But after hitting the pressure level, it naturally fell back, and the highest point position happened to be the downward trend line of the descending channel. So, where should we open an order? Directly on the strategy, open an order near the 64,500 support position to do more! I have drawn the detailed support and resistance positions, and you can refer to the chart.
Summary: The recent rise in Bitcoin is driven by improved macroeconomic trends, increased institutional demand, and strong performance in the technology industry.
