- Bitcoin nears $70,000, breaking the upper limit of its bearish channel since March, following a previous $74,000 high.
- Potential risks include U.S. elections, geopolitical tensions, and recession fears impacting Bitcoin’s demand and growth in coming weeks.
Bitcoin (BTC) is nearing the $70,000 mark, reaching levels not seen since July this year. This recent price movement places Bitcoin at the upper limit of a downward channel that has held since March, following a record high of nearly $74,000. Analysts link this rise to the strong performance of Bitcoin ETFs last week, with net capital inflows close to $2 billion, according to ETHNews.
Nate Geraci, president of ETF Store, described the ETF performance as “massive.” Over the weekend, Bitcoin buying on exchanges and over-the-counter (OTC) markets continued to drive prices upward, even without active ETF trading. According to the support and resistance theory, breaking this upper channel limit could signal the end of the ongoing bearish trend.
Financial analyst Keith Alan notes that “whales,” or wallets holding over 1,000 BTC, are watching for a potential resistance-to-support flip at $70,000 and $71,900. Alan points out that these investors are closely linked to the strength of the technical resistance at these levels.
Meanwhile, professional trader Michael van de Poppe believes Bitcoin is approaching a new all-time high. He suggests that a breakthrough could occur soon, although he is uncertain whether it will be this month or next. Van de Poppe views any potential pullback as a buying opportunity.
Despite optimism, three risks could limit Bitcoin’s rise in the coming weeks. First, the U.S. presidential election results could influence the market. Kamala Harris, with a more moderate stance on cryptocurrencies, may create uncertainty, while a Donald Trump victory could boost Bitcoin demand, given his pro-digital industry stance.
Second, rising geopolitical tensions in key regions such as the Middle East, Russia, and Ukraine may push investors toward traditional safe-haven assets like gold, potentially slowing Bitcoin’s growth, as it remains a risk asset due to high volatility.
Lastly, global recession fears persist, following inflation data in the U.S. that exceeded expectations. If signs of economic slowdown increase, demand for risk assets like Bitcoin could weaken. Still, van de Poppe maintains that long-term bullish sentiment prevails, suggesting that any drop in Bitcoin’s price may present an opportunity to accumulate more BTC for hodlers.
