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Bitcoin has seen an impressive rally since early September, rising 31% from local lows of around $53,000. However, after testing the $69,500 supply level, the cryptocurrency is facing selling pressure. Despite this, Bitcoin remains strong, holding above the previous high of around $66,000, a crucial level that determines its next move.
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Key data from CryptoQuant reveals that despite recent bearish attempts, bears are losing control in the futures market. A major index turned higher for the first time since July, suggesting that the current selling pressure may not be enough to push Bitcoin lower.
With Bitcoin at a critical stage, staying above the $66,000 level would indicate continued strength and maintenance of the uptrend for the coming weeks. Investors are watching closely, as Bitcoin’s ability to stay above this support could pave the way for new highs and more momentum in the bull cycle.
Bitcoin buyers are starting to breathe
Marketunn Crypto Analyzer Share recent data from CryptoQuantrevealing that Bitcoin buyers in the futures market have struggled to gain an advantage over long sellers throughout the past year. Martin highlighted a chart showing that the volume of net Bitcoin buyers has turned positive for the first time since July, indicating a potential shift in momentum.
The current trend change indicates that bears are starting to lose control of Bitcoin’s price movement, with buyers starting to gain strength.
This data indicates an accumulation phase, during which the price of Bitcoin was suppressed by large investors, preventing it from making significant gains or recording new monthly lows. The fact that BTC did not record new lows despite previous downward pressure reinforces the view that the accumulation period may be over, and a new bull phase may be on the horizon.
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The coming weeks are crucial for Bitcoin, especially with the US presidential election approaching on November 5. Historically, elections lead to volatility and uncertainty in financial markets; This year is no exception.
Broader market trends are likely to impact Bitcoin’s price movement, and traders are watching closely to see how Bitcoin responds to these developments. If Bitcoin maintains its upward momentum, a rally to new highs could follow in the weeks following the election.
Critical support for BTC testing
Bitcoin is currently trading at $66,400 after a healthy rebound from its recent high of $69,500. The price is now finding support at $66,000, which served as major resistance in late September and has since flipped into a crucial demand zone for Bitcoin. This support is essential for the bulls to maintain control, as holding above the $66,000 level signals strength and keeps the momentum alive for another attempt to break the $70,000 level.
If Bitcoin can hold above this support level, the next logical target would be to challenge the $70,000 resistance, which has proven difficult to break. Successfully clearing this level will likely lead to further upside, which could push BTC to new price discovery.
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However, if the price exceeds $66,000, a bounce back to lower demand levels may occur. In this case, the 200 daily moving average at $63,300 is the next key area where Bitcoin could find support before resuming its upward trend. The coming days will be crucial in determining whether Bitcoin is able to maintain its upward trajectory or whether a deeper pullback is on the horizon.
Featured image by Dall-E, chart from TradingView