Bitcoin is marking a change in trend. When will it consolidate?
“We are about to see a new all-time high for bitcoin,” says Van de Poppe.
There are 3 dangers that could stop the rise.
The price of bitcoin (BTC) is approaching the $70,000 mark, reaching prices not seen since July of this year.
As seen in the image below, this price increase implies that bitcoin is at the upper limit of the bearish channel in which it has been “prisoner” since March, after having reached an all-time high close to $74,000.
This increase in recent days is largely due to good performance of bitcoin ETFs last weekwhich had net capital flows close to $2 billion, as CriptoNoticias reported on Friday.
Nate Geraci, president of the ETF Store company, described the performance of bitcoin ETFs as “monstrous.”
Evidently, over the weekend (when there is no ETF trading), buying on bitcoin exchanges and OTC markets continued to drive the price.
According to the theory of supports and resistances, if bitcoin were to strongly break the bearish channel boundary, it could be considered that there is a high chance that the bearish trend is in the past.
Financial analyst Keith Alan explains that “the whales [direcciones con más de 1.000 BTC] “They are evaluating another possible resistance-support change at $70,000 and $71,900.” Alan adds that these investors “have significant demand liquidity closely correlated with the strength of technical resistance at their respective levels.”
Michael van de Poppe, professional trader, think something similar:
«Bitcoin is attacking the $70,000 barrier and aims to take the subsequent liquidity. I think we are about to make a new all-time high. I don’t know if it will be this month or next, but the bull market is here.
Michael van de Poppe, trader.
Van de Poppe does not rule out that bitcoin may have another fall on its way to a new all-time high. For him, that would be a buying opportunity.
Although optimism predominates, CriptoNoticias detailed that there are three factors that could slow the rise of bitcoin in the coming weeks.
The first is the result of the presidential elections in the United States. A victory for Kamala Harris could generate uncertainty in the market, since her stance towards the cryptocurrency industry has been more moderate than that of her opponent Donald Trump. Instead, Trump’s victory could boost demand for bitcoin, due to his expressed intention to favor the digital industry.
The second factor is the escalation of war conflicts in key regions such as the Middle East, Russia and Ukraine. During times of geopolitical tension, investors tend to seek refuge in traditional assets such as gold, which could slow the growth of bitcoin, still considered a risk asset due to its high volatility.
Finally, fear of a global recession is still present, especially after inflation data in the United States exceeded expectations. If signs of an economic slowdown are confirmed, demand for perceived “risky” assets, such as bitcoin, could decline.
Following the thinking of Michael van de Poppe, and taking into account that in the medium and long term the bullish perspectives remain valid, any factor that causes a fall in bitcoin could be taken as an aid to increase the position. Hodlers and long-term investors will be grateful for anything that makes it easier for them to accumulate more sats.
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.