The price of bitcoin (BTC) had marked an all-time high (ATH) in the early hours of today, Wednesday, November 6, 2024.
The presidential elections in the United States that left the Republican Party candidate, Donald Trump, as the winner, They pushed BTC up to $75,400.
From there, the price of BTC fell to $72,600, caused by those who took advantage of the arrival of new all-time highs to take profits.
But, once again, the buyers returned to the fray and BTC price has been rising organically since then.
At the time of this publication, bitcoin exceeds $75,800 and is once again setting all-time highs.
It is worth clarifying that the area in which BTC is located can still be considered a support-resistance area, so BTC could perhaps remain sideways in this area or even fall, if it does not have sufficient buying volume.
The following graph, provided by TradingViewallows you to observe these movements:
In the realm of financial markets, a resistance (yellow line in the chart above) is a price level that the asset, in this case bitcoin, has had difficulty surpassing in the past.
This level acts as a psychological and technical barrier where sellers tend to enter the market, causing the price rise to stop or even start a correction. Resistance is usually formed due to the collective memory of investors who remember selling or buying near that price, creating a buildup of sell orders right at that point.
When resistances are overcome, they usually become supports, which are areas where the price has a “floor” and the falls do not continue.
Keep in mind that, as reported by CriptoNoticias, Bitcoin ETFs in the United States today have had a large trading volume. This is positive for the price of bitcoin since the management companies of these investment funds must buy BTC to support demand.
Furthermore, the market anticipates that Tomorrow, November 7, the Fed will likely announce new interest rate cuts in the United States. When this occurs, the yield on Treasury bonds falls and therefore volatile assets such as stocks, bitcoin and cryptocurrencies are favored.
For all this, There are high chances that bitcoin will manage to overcome the aforementioned resistance and continue the bullish course during the next few hours.