Bitcoin is set to close out a volatile week, marked by an attempt to break its all-time high (ATH) that eventually ended with a rebound to lower demand levels. Despite this decline, market sentiment remains largely positive.
Key data from CryptoQuant reveals that net taker volume (SMA-24H) across all exchanges is currently indicating a bullish outlook, with buying pressure outpacing selling pressure in this metric. This trend highlights growing confidence among investors, which is in line with the broader sentiment seen following the recent US election results, which injected new optimism into the cryptocurrency market.
Analysts expect an uptrend for Bitcoin, supported by strong buying interest from retail and institutional players. The data confirms that while Bitcoin faces short-term hurdles around its ATH, fundamental demand suggests another rally could be on the horizon.
As the election continues to play out and Bitcoin price consolidates above key demand areas, the coming days will be crucial in paving the way for its next major move. Bitcoin’s ability to regain its upward momentum and break into price discovery will depend on sustained demand and the continuation of this upward trend across exchanges.
Bitcoin is poised for a volatile week
Bitcoin is gearing up for one of the most crucial weeks in its history, with big events on the horizon that could shape market sentiment for the rest of the year. The US elections on Tuesday and the Federal Reserve’s upcoming interest rate decision on Thursday will create a high-risk environment for Bitcoin and the broader cryptocurrency market.
These two events are expected to increase volatility and inject uncertainty into price action, making this an exceptionally critical moment for Bitcoin.
Noted analyst and investor Axel Adler recently Data shared on X that confirms the positive outlook for Bitcoin. His analysis highlights the net taker volume (SMA-24H) across all exchanges, indicating a balance between strong buy and sell orders. This indicator reveals bullish sentiment, with buying interest outpacing selling pressure. This data suggests that buyers are bracing for a potential price rise, strengthening the bullish outlook for BTC as it heads into this crucial week.
However, Adler warns that the path to a new ATH is uncertain. While the volume of net acquirers indicates a potential upward trajectory, the sheer volume of this week’s events could lead to increased volatility. Historically, such events have sparked sharp market reactions, leaving Bitcoin vulnerable to rapid price fluctuations in either direction.
If the Fed signals a rate cut, or if election results favor cryptocurrency-friendly policies, Bitcoin could see a strong rally. Conversely, any signs of tightening financial conditions or regulatory risks could dampen sentiment and lead to a pullback.
Overall, Bitcoin faces great opportunity and great risk this week. The actions of the US government and central bank will be pivotal in determining whether BTC can capitalize on the current bullish momentum and potentially achieve all-time highs.
BTC holding critical level
Bitcoin is currently trading at $68,500, after a 7% decline from its recent high of $73,600. Despite the pullback, Bitcoin remains resilient above $67,000, a crucial support level that has held firm amid market volatility. This level is considered key to maintaining a bullish outlook, as any decline below it may indicate further correction and weaken short-term momentum.
However, if BTC can hold above $67,000 and recover towards the $70,000 level, it would form a strong foundation for a renewed push towards all-time highs. This scenario will likely activate bullish sentiment, positioning BTC to challenge the previous peak of $73,794 and possibly enter the price discovery zone.
The market is closely monitoring these critical levels, with $67,000 acting as a line in the sand. As long as BTC remains above this level, confidence in the upside remains intact. A break above the $70,000 mark could act as a catalyst, attracting new buyers and putting BTC on a direct path to retesting and potentially surpassing its all-time highs, cementing its position as a market leader.
Featured image by Dall-E, chart from TradingView
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