Bitcoin Price Levels to Watch After Cryptocurrency Sets New Record High
Bitcoin (BTCUSD) surged to a record high near $77,000 on Thursday, extending a rally that followed Donald Trump's win in the presidential election.
Investors view a future Trump Administration as a positive development for Bitcoin and cryptocurrency more broadly, specifically in relation to regulation and the potential for the creation of a federal strategic bitcoin reserve, two areas the president-elect addressed when delivering a speech at the Bitcoin 2024 conference in July.
The Trump-fueled momentum comes at a welcome time for the legacy cryptocurrency, which has traded mostly sideways over the past seven months as exuberance subsided following the launch of spot Bitcoin exchange-traded funds (ETFs) in January and the asset’s halving event in April. Since the start of the year, Bitcoin has gained around 80%, adding the lion’s share of those gains in the first quarter.
Below, we analyze the technicals on Bitcoin’s weekly chart and identify important post-election price levels that investors may be watching.
Since its November 2021 peak, Bitcoin’s price has formed a cup and handle, a chart pattern that signals a continuation of the cryptocurrency’s longer-term uptrend.
Indeed, the price staged a breakout above the formation’s upper trendline on Wednesday, potentially marking the start of a near-term move higher.
It’s also worth pointing out, that although Bitcoin trading volumes on Coinbase (COIN) remain below longer-term averages, they have increased in recent weeks, suggesting that investors may be returning from the sidelines.
Let’s forecast a measured move price target and identify key support levels to watch during retracements.
Although there’s limited overhead price action to work with, we can forecast a
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