Bitcoin (BTC) experienced a price decline to $91,000 after testing resistance levels. This drop coincided with a recent statement by Trump on the G20, causing market reactions. Meanwhile, U.S. markets are set to close early today as the weekend approaches, but a significant shift is noted among U.S. investors.
U.S. Cryptocurrency Investors
While South Korean investors pivot towards AI and tech stocks, U.S. investors show increased interest in equities and a declining appetite for cryptocurrencies. Over the past month, the Coinbase Premium remained negative, indicating rapid reversals of price rallies. Today, anlcnc1 noted that sentiment has finally improved, turning positive after a prolonged downturn.
The renewed interest from American investors is crucial for sustaining Bitcoin’s upward momentum and overcoming resistance levels. Post-21:00, as the U.S. stock markets close, we will closely monitor Bitcoin for continued positive sentiment. If the positivity persists, breaking the $93,000 resistance could lead to noteworthy gains in altcoins.
Risk Factors in Bitcoin’s Trend
Lark Davis suggested that a credible trend reversal requires a break over $110,000. He tracks the trend line connecting previous cycle peaks, noting $110,000 as pivotal for the ongoing cycle. Failure to achieve this might form a bearish head and shoulders pattern, potentially pushing BTC down to $60,000.
A favorable scenario involves breaking the shoulder and surpassing the peak, allowing BTC to advance to $160,000 next year. However, if Davis’s concerns prove true, analysts like Roman Trading indicate a low cycle beneath $60,000 might be reached. Roman Trading plans to start DCA at $50,000, noting that severe drop risks persist despite possible interim BTC rises.
DaanCrypto highlights the key level of $91,800 and notes that BTC has recently shifted downward, finding buyers at $90,800.
“BTC, had been consolidating within this relatively narrow range. Post re-opening of futures today, it surpassed its prior highs, reaching $93,000, but has now reverted to the ~$91,000 range.
A break below this level calls for observing the $88,000-$89,000 zone for a higher low. Alternatively, acceptance and holding above $91,800 could facilitate another reach toward levels over $93,000. Expect a volatile environment shortly before and after Thanksgiving, when volume and liquidity are typically low, especially as the weekend nears.”