BTC/USD outlook: Bitcoin attacks key resistance zone, fueled by expectations of Trump's election victory
|BTC/USD
BTC/USD keeps firm tone and holding near new record high (73839 posted in March) after strong acceleration on Tuesday (up 3.6% for the day) rose above 73K for the first time in 7 ½ months and spiked to the levels near all-time top.
Bitcoin is moving within a larger uptrend for the two months after correction from the record high has bottomed, with subsequent rally signaling that corrective phase is almost over.
Bitcoin benefited from geopolitical and economic uncertainty, with the latest growing expectations from Trump’s victory on US presidential election (market see Trump’s stance towards cryptos as more favorable) providing strong tailwinds to the world’s largest cryptocurrency.
Technical studies on daily chart are bullish but overbought, adding to uncertainty as the price is attacking a critical resistance zone.
Bulls cracked the trendline (72725) which marks the upper boundary of larger bull channel and firm break (through trendline and record high) is needed to generate signal of bullish continuation.
However, Tuesday’s false break through trendline (daily candle with long upper shadow warns of growing offers) and the price continuing to struggle at this zone, requires caution.
Near-term bias is expected to remain with bulls while the price holds above 72000 zone (former tops) and guard lower pivot at 70000, loss of which to likely signal deeper drop.
US economic data (GDP, labor) will be closely watched, but stronger direction signal is expected from the results of the US election.
I assume that Trump’s victory will fuel fresh acceleration higher and join analysts who see Bitcoin rallying towards 100K in coming months.
On the other hand, Harris’ victory would likely spark fresh sell-off, but unlikely to be an ‘end of the world’ for Bitcoin, as platform of Democratic party is also friendly oriented to the cryptos.
Res: 72725; 73615; 73839; 74961.
Sup: 72960; 72000; 71000; 70000.
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