Bitcoin is about to cap off a volatile week marked by an attempt to break its all-time high (ATH), ultimately ending in a return to lower demand levels. Despite this setback, market sentiment remains largely positive.
Key data from CryptoQuant shows that Net Taker Volume (SMA-24H) across all exchanges is currently indicating a bullish outlook as buying pressure in this metric exceeds selling pressure. This trend highlights growing confidence among investors, in line with broader sentiment following the recent US election results, which injected new optimism into the crypto market.
Analysts expect an upward trend for Bitcoin, supported by strong buying interest from retail and institutional players. The data highlights that while Bitcoin faces hurdles around its ATH in the short term, underlying demand suggests another rally may be on the horizon.
With the election impact still unfolding and Bitcoin’s price consolidating above key demand zones, the coming days will be crucial in paving the way for the next big move. Whether Bitcoin can regain its upward momentum and break through the price trend will depend on continued demand and the continuation of this bullish trend on the stock markets.
Bitcoin is preparing for a volatile week
Bitcoin is gearing up for one of the most pivotal weeks in its history, with major events on the horizon that could shape market sentiment for the rest of the year. Tuesday’s US elections and the Federal Reserve’s upcoming interest rate decision on Thursday will create a high-stakes environment for BTC and the broader crypto market.
These two events are expected to drive volatility and inject uncertainty into the price action, making this an exceptionally critical moment for Bitcoin.
Prominent analyst and investor Axel Adler recently shared data about. His analysis highlights Net Taker Volume (SMA-24H) across all exchanges, which indicates the balance between aggressive buy and sell orders. This indicator shows bullish sentiment, with buying interest exceeding selling pressure. This data suggests that buyers are preparing for a potential price surge, further strengthening the bullish outlook for BTC as it enters this pivotal week.
However, Adler warns that the path to new ATH is uncertain. While Net Taker Volume indicates a possible upward trajectory, the sheer magnitude of this week’s events could lead to greater volatility. Historically, such events have prompted sharp market reactions, making BTC susceptible to rapid price swings in either direction.
If the Fed signals a rate cut, or if election results favor crypto-friendly policies, BTC could see a powerful rally. Conversely, any indications of tighter financial conditions or regulatory risks could dampen sentiment and lead to a pullback.
Overall, Bitcoin faces both significant opportunity and significant risk this week. The actions of the US government and central bank will be critical in determining whether BTC can capitalize on the current bullish momentum and potentially reach new all-time highs.
BTC is holding a crucial level
Bitcoin is currently trading at $68,500, after a 7% decline from the recent high of $73,600. Despite the setback, BTC remains resilient above the $67,000 mark, a crucial support level that has held firm amid the market volatility. This level is crucial for maintaining a bullish outlook as any decline below it could signal further correction and dampen short-term momentum.
However, if BTC can hold steady above $67,000 and recover towards the $70,000 level, it would lay a strong foundation for renewed momentum towards its all-time high. This scenario would likely revive bullish sentiment and position BTC to challenge the previous peak of $73,794 and possibly enter price discovery territory.
The market is closely watching these critical levels, with $67,000 acting as a line in the sand. As long as BTC remains above, confidence in the bullish trend remains intact. Breaking the $70,000 barrier could act as a catalyst, attracting new buyers and putting BTC on a direct path to retest and possibly surpass its all-time highs, solidifying its position as the market leader.
Featured image of Dall-E, chart from TradingView