Bitcoin BTC has been breaking resistance recently, making speculations of a possible new all-time high timely. Looking at the current price, Bitcoin is consolidating with strength as it tests the resistance level at $66,000. If BTC breaks this horizontal level and holds, the next target could be $68,000. But is it enough to take Bitcoin to a new ATH?
Various factors are currently in play. These include market analysis, government or institutional adoptions, and the current political heat in the U.S. Therefore, the road ahead for BTC gets more interesting.
#Bitcoin Breaking Critical Resistance !
— Crypto Yapper (@CryptoYapper) September 26, 2024
We need to see a Daily candle close above the resistance to confirm the gain
If $BTC breaks this horizontal level, we could pump to $68,000 pic.twitter.com/eNK7Ur0EiX
Technical Setup: Is $68K a Springboard?
Recent price actions in Bitcoin suggest it is preparing for a vibrant Bullish momentum. A close above $66,000 could push the price towards $68,000, thus setting a case for a larger breakout. Bitcoin has moved aggressively and quickly throughout history once it overcame key resistance zones. However, BTC must sustain this rally above these levels to increase momentum further. In such a case, a breach of resistance at $68,000 might set Bitcoin to stage a rally toward testing its previous ATH at around $69,000.
On the other hand, cautionary signs are flashing. There is strong resistance at these levels in Bitcoin, which it has seen repeatedly earlier. CryptoQuant data gives a mixed signal, showing that the exchange reserve is declining at 2,571,662.83 BTC, supporting lesser selling pressure. On the other hand, net deposits surged by a significant +580.28%, which may indicate that traders are ready to sell and take their profits. These two can cause price volatility since the short profit-taking could nullify the long-term bull rally. Therefore, without strong buying pressure or some catalysts, a retracement may occur before such an advance.
Source: Cryptoquant
U.S. Elections and Cryptocurrency Donations: A New Catalyst?
The U.S. election cycle is approaching, which could affect Bitcoin’s price. Digital currencies have become intertwined with campaign donations of late, adding another layer to the Bitcoin narrative. Crypto acceptance by political figures should help create a positive environment for BTC. More exposure and legitimacy concerning cryptocurrency in the U.S. political space could mean friendlier regulations, boosting Bitcoin’s price action.
What’s Next: More Volatility or Stability?
Higher volatility could be expected from Bitcoin in the coming days as the heat rises towards the 2024 U.S. election. A political transition often brings uncertainty in the market, but this might also be a pleasant time for Bitcoin to gain momentum. If Bitcoin holds up to its gains and breaks past $68,000, the next few days could be crucial in deciding whether it reaches a new ATH. All eyes remain firmly glued to the Price actions and associated on-chain metrics as investors seek to adjust their positions accordingly.
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