Since Tuesday, Bitcoin has been consolidating just below its all-time high (ATH) that was $71,300 and is now trading in narrow range of $71,300 – $73,300, indicating a major price move in the near future.
Investors and analysts are keeping their eyes on the rate to see if BTC breaks higher to new highs, or retreats slightly, in order to continue growing. Bitcoin’s trading volume has been declining steadily within this range, often precursory to a major price swing, top analyst Axel Adler from CryptoQuant tweeted Thursday.
However, many in the market are expecting a breakout sometime after the next U.S. election on November 5. The sentiment for market is bullish which suggests that the BTC can go above the $73,794 ATH if momentum prevails.
Bitcoin Holds Key Support Levels
Actually, according to Adler, Bitcoin’s current range with the 7 month accumulation phase now ending in a rush was to be considered a defining moment in this cycle limited by Bitcoin’s price range anywhere between $72,900 resistance and $71,400 support.
While this tight volume hints at lower volume within this tight range, it doesn’t feel like the clear catalyst to breakout to previous highs will present itself. And the election outcome: If Trump wins, speculators say it could be a good time to be hodling Bitcoin, with prices upward potentially from a Trump win.
A move above $73,794 could kick off price discovery and with it begin FOMO (fear of missing out) buying that would catapult gains. Despite this, if BTC cannot hold new highs, there is a possibility that the price may dip below $70,000, pockets of consolidation until a new momentum begins to show.
At the moment, Bitcoin is still well above $72,000 and the $71,000 support level is paramount in keeping the momentum focused on the green. If it holds a steady position above this mark then we could see a decisive move at the ATH which should spark a new wave of market optimism.
With these levels crossed, traders focusing on BTC’s performance here are handicapping the possibility that the move above $73,794 could open the floodgates to previously uncharted price territory.
The fact Bitcoin is staying above $72,000 tells you it will have another go at an ATH before too long, and a break will be only the beginning of the price discovery and fresh all time highs as long as demand can continue to keep support.
