Bitcoin faced resistance at the key psychological level of £70,000 on Monday and dropped by 2.3% on Tuesday. As of Wednesday, Bitcoin's price slightly decreased to around £66,722.
If BTC continues to retrace, it may fall further and retest the next psychological support level of £66,000.
The Relative Strength Index (RSI) on the daily chart is at 58, pointing downward after breaking through the overbought level of 70 on Sunday, indicating a weakening bullish momentum. If it continues to decline and closes below the neutral level of 50, it may lead to a significant drop in Bitcoin's price.
After several dips to £66,500, how will it move next?
It is obvious that BTC is exchanging chips in the £60,000-£69,400 range, with low-priced chips being replaced by 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. Additionally, from the candlestick chart, the current price remains 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 a few days of consolidation. 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 University of Michigan Consumer Sentiment Index on Friday will be released. There are no market makers over the weekend, leading to lower liquidity. Additionally, next week's macro data PCE, along with MSTR and COIN's earnings reports, and the upcoming US elections will contribute to market sentiment, stimulating BTC price fluctuations. Of course, among the events mentioned that stimulate sentiment, positive news is more prevalent. Even negative sentiment is usually very short-lived; however, if negative sentiment appears, it will definitely test the lower position at £65,800.
Once the sentiment drives funds to buy in and breaks through £72,000, then it will be a new high. At that time, do not FOMO too much.
There are two aspects of altcoins to pay attention to:
1. The gaming sector has seen most of the new tokens launched on a certain platform since the end of last year come from the gaming sector. However, during the first wave of altcoins at the beginning of the year, the gaming sector hardly made any moves. After more than half a year of clearing, the highs have dropped nearly 90%, and now it is starting to show some strength.
2. The MEME sector started with the hype around various animals—frogs, hippos, BOME, etc.—and now it's shifted to AI + MEME. It is very likely that MEME will permeate the entire cycle.
Aside from memes, the performance of public chains is decent; Solana is also the absolute leader here and is one of the few projects that can rise against BTC in this wave. TIA, ICP, Tron, and ADA are also performing reasonably well, while other altcoins are mostly in a downturn. In short, the market is not entirely in an altcoin bull phase yet. I still believe Q4 will see a significant rise; let's all look forward to it.
