TLDR:
Bitcoin price holding above $67,000 resistance zone
Technical indicators suggest potential for further gains
Trump presidency prospect providing momentum for crypto assets
Historical patterns indicate possible 60%+ rally for Bitcoin
Analyst Henrik Zeberg identifies alignment of three critical technical indicators
Bitcoin, the world’s leading cryptocurrency, continues to trade near the $68,000 mark as multiple technical indicators suggest the possibility of further gains. The digital asset has shown resilience in recent days, maintaining its position above the $67,000 resistance zone despite minor pullbacks.
As of Friday, October 18, 2024, Bitcoin was trading at approximately $67,875, up 0.6% over the past 24 hours. The cryptocurrency has experienced a notable 12% increase over the past week, with market analysts attributing part of this momentum to the prospect of a Donald Trump presidency.
Trump, known for his support of digital assets, is currently leading in recent polls for the upcoming U.S. presidential election.
The potential for a more crypto-friendly regulatory environment under a Trump administration has fueled optimism among investors. This sentiment is further bolstered by the involvement of high-profile crypto enthusiasts like Elon Musk in Trump’s circle of supporters.
Many in the crypto community believe that a Trump victory could lead to a more favorable regulatory landscape for digital assets in the United States.
From a technical analysis perspective, several indicators are aligning to suggest the possibility of a significant upward movement in Bitcoin’s price. Macroeconomist Henrik Zeberg has identified a pattern across three critical technical indicators that have historically signaled major price rallies when they converge.
The Relative Strength Index (RSI), a momentum indicator, has broken above a descending trendline and is positioned above the 50 mark, often interpreted as a sign of growing bullish momentum. Simultaneously, the Moving Average Convergence Divergence (MACD) is showing a bullish crossover, with the faster-moving MACD line crossing above the slower signal line. This event is traditionally viewed as confirmation of a potential shift from bearish to bullish market conditions.
The third indicator highlighted by Zeberg is the lesser-known Relative Vigor Index (RVGI), which is also experiencing a bullish crossover. The RVGI measures the vigor of price movements, and its current configuration adds to the bullish undertone suggested by the other indicators.
Zeberg notes that in past instances where these three indicators aligned, Bitcoin experienced rallies of at least 60%. Historical data shows price surges ranging from 64% to 824% following similar technical setups. Based on this pattern, Zeberg forecasts the potential for a “Blow-Off Top” scenario, where Bitcoin’s price could rapidly increase to between $115,000 and $120,000.
The $68,000 level has proven to be a significant resistance point for Bitcoin in recent days. The cryptocurrency has faced rejection at this level multiple times over the past three days, suggesting that stronger upward momentum may be needed to break through this barrier decisively.
Market observers are closely watching for any signs of a breakout above the $68,000 mark, which could potentially pave the way for a test of the $70,000 level. On the downside, support levels are identified at $67,200 and $66,500, with a break below these points potentially signaling a short-term bearish trend.
