Analyst Warns Bitcoin Rally May Be Short-Lived Amid Key Resistance Levels
As Bitcoin (BTC) sees a price surge, partly due to the Federal Reserve's interest rate cut, a cryptocurrency analyst warns that this upward momentum may not last long.
In a TradingView post on September 21, RLinda noted that Bitcoin is nearing critical price levels, where technical factors and upcoming economic events could trigger a shift in momentum.
The analyst highlighted a significant resistance zone between $64,000 and $65,000, which has yet to be fully tested and could impede Bitcoin’s ascent. Additional resistance is anticipated around $68,000 to $69,000, raising concerns about a potential stall in upward movement. RLinda pointed out a double top formation in the current price action, suggesting that the rally may be losing strength.
While the broader outlook for Bitcoin remains somewhat optimistic, local trends indicate growing pressure as the cryptocurrency approaches these critical resistance levels. This divergence creates uncertainty, especially with key economic reports expected next week. Events such as a speech from the Federal Reserve chair could dramatically affect market sentiment. The analyst cautioned that bullish enthusiasm might quickly dissipate if these indicators surprise traders.
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For now, Bitcoin appears to be consolidating above the $62,750 mark, suggesting some short-term stability. However, if selling pressure drives the price below this level, it could lead to a swift drop to lower liquidity zones, possibly reaching $61,300 or even lower levels at $59,400 and $57,730.
Meanwhile, another analyst known as Trader Tardigrade noted that the current consolidation is occurring within a symmetrical triangle pattern, which has historically led to significant price movements. After gaining over 70% from previous patterns, the analyst predicts that Bitcoin could target $100,000 if this trend continues.
#Bitcoin has this BREAKOUT at the end of Consolidation 🔥
Minimum target of this breakout is $100k 🚀 pic.twitter.com/X1z6Oykgvx— Trader Tardigrade (@TATrader_Alan) September 21, 2024
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
