Coin World Report:
Bitcoin’s price fell 2.3% on Tuesday after encountering key psychological resistance at $70,000 on Monday. As of Wednesday, the price of Bitcoin has slightly declined to around $66,722.
If BTC continues to retreat, it may further decline and retest the next psychological support level at $66,000.
The relative strength index (RSI) indicator on the daily chart is at 58, pointing downwards after surpassing the overbought level of 70 on Sunday, indicating a weakening bullish momentum. If the price continues to decline and closes below the neutral level of 50, it could lead to a significant drop in the price of Bitcoin.
After several attempts to test the bottom at $66,500, what’s next?
It is obvious that BTC has been experiencing chip turnover in the range of $60,000 to $69,400, with low-priced chips being exchanged for high-priced chips. In other words, the chips in the range of $60,000 to $66,000 are being sold in the range of $66,500 to $69,400 and bought up. Additionally, from the perspective of the candlestick chart, the current price is stable above $66,500, and once the price approaches $66,500, it is being bought up by buy orders.
There has been a consolidation in the range of $66,500 to $67,200 and $68,000 for a few days. It seems that both long and short positions have reached a balance here, waiting for new emotions and information to break this equilibrium.
Next, macro data for this week, such as the final value of the University of Michigan Consumer Confidence Index on Friday. There are no market makers over the weekend, leading to lower liquidity. Moreover, there are macro data such as PCE next week, as well as financial reports from MSTR and COIN, and approaching the US presidential election. These news events will stimulate price fluctuations in BTC. Of course, among the events that stimulate emotions mentioned above, there are more positive emotions. Even if there is negative sentiment, it will be short-lived. If negative sentiment appears, it will definitely test the lower level of $65,800.
Once emotions drive funds to buy and break through $72,000, it will be a new high. At that time, be cautious not to get too FOMO.
Finally, let’s talk about altcoins.
Currently, Bitcoin is trading in a narrow range and experiencing fluctuations. We need to wait and try not to engage in left-side trading, but wait for clear signals to make a new market judgment.
At the same time, pay attention to when Ethereum will show strength. Currently, after breaking through $2,700, it has been on a downward trend, unlike Bitcoin, which is more weak.
Bitcoin is in a critical period for both long and short positions, and I remain cautious about altcoins.
Currently, there are still no signs of altcoin narratives. The only game in the market right now is the election.
Regardless of who wins the election, it is bullish for BTC. The price of BTC is likely to break new highs, but how high it can go depends on who is elected. If Trump is elected, the upper limit may be higher, while if Harris is elected, the upper limit may be lower. There are 14 days left until the election! Let’s wait and see.