In a promising move for Bitcoin bulls, the leading cryptocurrency has established a crucial support level at $66,500, where it currently sits above all major moving averages. According to crypto analysts from Kraken, this positioning indicates a constructive trend that could see Bitcoin regain its all-time high (ATH) if it maintains this level.
“This breakout suggests that bulls are firmly in control, and as long as BTC remains above the $66,500 level, the trend should remain constructive,” the analysts noted in their October 26 report. With Bitcoin holding its ground above key averages, traders are optimistic that the bulls will continue to hold the upper hand as long as this support holds.
Eyes on $73,679 – The Path To New Highs
Analysts have underscored that Bitcoin’s next critical level is its all-time high of $73,679, reached last March. Should BTC sustain its upward movement above $66,500, the path to $73,679 could open doors to new highs, prompting another wave of bullish sentiment.
“Breaking above this level would likely open the door for new price discovery and further upside momentum,” the Kraken analysts pointed out.
As of October 26, BTC was trading at $66,578, slightly down 1.89% since the previous day. On October 25, it briefly dipped below the $66,500 mark to $65,700, amid heightened uncertainty in the crypto market and escalating geopolitical tensions in the Middle East. Some traders, including Hardy, a popular crypto analyst, attributed the dip to recent Tether-related fears and global events, including the rising tensions between Israel and Iran.
Geopolitical Concerns and Tether FUD Stir Market Jitters
Despite the encouraging outlook, Bitcoin’s recent price movements haven’t been without volatility. Concerns arose after a “bearish engulfing pattern” formed on October 21, sparking apprehension among traders. This pattern, often a precursor to short-term downturns, resulted in a price drop of 3.59%, with Bitcoin sliding from $69,367 to $66,873. Analysts noted that the pattern has been followed by steep corrections when seen near range highs over the past several months.
In addition to technical indicators, the market has been reacting to external events, including renewed scrutiny of Tether, the leading stablecoin issuer. On October 25, the Wall Street Journal reported that the U.S. government is investigating Tether, with sources close to the matter hinting at potential regulatory impacts on the broader crypto market. In response, Tether CEO Paolo Ardoino dismissed the report, calling it “old noise,” but the potential for regulation has added a layer of caution among traders.
RSI Signals a Potential Pullback
Beyond external pressures, technical analysis points to some potential near-term turbulence for Bitcoin. The relative strength index (RSI) has shifted from an overbought position, a signal that often precedes consolidation or minor pullbacks. While this doesn’t necessarily spell an end to Bitcoin’s bullish trajectory, it does indicate that traders may want to brace for short-term volatility.
Also Read: Bitcoin Bull Run – $100,000 Target Within 90 Days As BTC Hits $68,449!
While Bitcoin holds above $66,500, bulls are expected to maintain control of the trend. If BTC successfully approaches its ATH of $73,679, it could enter uncharted price territory, with bullish momentum propelling it toward further gains. However, external factors like regulatory pressures on Tether and ongoing geopolitical concerns remain key risks that could impact Bitcoin’s trajectory.
For now, Bitcoin’s resilience at $66,500 offers a solid foundation for bulls, but both technical and external factors warrant caution in the near term. As long as Bitcoin continues its upward trend, crypto analysts remain optimistic about its potential to break previous highs, setting the stage for a strong end to the year.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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