coinedition.com
Bitcoin surged to $73,600 on Tuesday, putting in a classic bull run rally. This pushed the cryptocurrency into significant resistance, less than $200 away from its all-time high. An Altcoin Buzz podcast analyst said that reaching this region could trigger a dip in Bitcoin’s price. However, he did not predict how far the dip would go to determine whether the Bitcoin bull run had started or if the recent rally was a bull trap.
Consistent with the analyst’s prediction, Bitcoin pulled back after Tuesday’s price surge, trading for $72,428 at the time of writing. The pullback so far seems typical of a cryptocurrency’s intraday behavior. It does not suggest that the flagship crypto crashed after reaching a region of significant resistance.
Bitcoin’s Price History and Potential Scenarios
The Altcoin Buzz analyst said it is too early to determine Bitcoin’s next move, given its proximity to an all-time high. He used historical data to show how the cryptocurrency has repeatedly collapsed after reaching this price region. The first time Bitcoin climbed above $73,000, it crashed 17% within one week.
Read also: Bitcoin’s Open Interest Surges to $16 Billion as Price Nears All-Time High
It is worth noting that Bitcoin has tested this region several times since March and has fallen each time. These repeated attempts and failures make this one of Bitcoin’s most notable price regions. Nonetheless, analysts think the situation might be different this time.
According to the Altcoin Buzz analyst, the upcoming election could significantly affect Bitcoin’s behavior. He predicts that Bitcoin will pull back after testing the resistance and enter a sideways trend. The analyst expects a minimal retracement. He identified the $65,000 region as immediate support and the potential base of a pre-election sideways channel for Bitcoin.
Bitcoin pumped 13% in the past seven days, injecting a bullish momentum into the cryptocurrency market. Besides the upcoming elections, the pioneer cryptocurrency’s behavior is consistent with its seasonal trend, with the fourth quarter of the year representing a bullish period for the cryptocurrency market.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.