Amid changing market conditions, Bitcoin has seen an upward trend, approaching significant resistance points. Yet, given the inherent volatility of cryptocurrencies, this bullish momentum could temporarily reverse before continuing its climb upwards.
Support Areas For Bitcoin Amid Potential Trend Reversal
Cryptocurrency values tend to experience abrupt shifts in their price direction. Therefore, Alphractal, a sophisticated investment and data analysis tool, underscores a vital on-chain indicator that unveils potential support points that Bitcoin might lean on should its current upward trend weaken.
Alphractal considers these stages crucial indicators for assessing Bitcoin’s long-term market resilience. The primary method used to gauge this is the Bitcoin Alpha Price index, a tool with an impressive track record of accurately predicting profitable Bitcoin opportunities and price fluctuations.
As a researcher, I am exploring an innovative approach to evaluating price trends, known as the Alpha Price metric. This method provides insights by contrasting the profitability of Short-Term and Long-Term investors against the average market price for Bitcoin. The chart illustrates this comparison, with the uppermost line, seldom exceeded by Bitcoin historically, representing the Alpha Price. Intriguingly, the lower lines are Fibonacci factors derived from our primary metric.
At present, Alphractal observes that Bitcoin has touched its second highest resistance level, which has prevented the price from rising beyond it since December 2024. If Bitcoin fails to sustain its current upward trend, significant support levels could develop at $84,700, $72,600, and $63,600. In this scenario, both short-term traders and long-term investors may need to adjust their strategies, as the market might no longer experience selling pressure.
Keep in mind that these figures are constantly changing because their worth fluctuates every day due to on-chain activity. As Bitcoin’s price recovers following a period of heightened volatility, investors are keeping a close eye on these areas as potential spots for accumulation or equilibrium.
Factors Bolstering BTC’s Current Upward Trajectory
Bitcoin has once again surpassed significant milestones like the $100,000 point, fueling discussions about potential further price escalation. With such a robust recovery, the crypto community remains hopeful that the asset may soon reach its current record high of around $108,000.
Based on Santiment’s findings, this increase appears to be linked to two optimistic pieces of news originating from the U.S.: Firstly, Donald Trump’s declaration of a supportive stance towards cryptocurrencies; secondly, the release of the latest US Inflation reports.
As a crypto investor, I’m excited about the recent announcement from President-elect Donald Trump indicating that his administration plans to implement less stringent SEC regulations. He’s emphasized his dedication to establishing clearer token guidelines and eliminating unnecessary legal obstacles once he takes office next week. This promise of transparency and freedom could pave the way for a more favorable environment for crypto investments in the coming years.
Moreover, optimism is growing regarding potential further interest rate reductions by the Fed due to declining inflation rates in the U.S., which would promptly bolster the value of cryptocurrencies. Simultaneously, traders anticipate that the hawkish FOMC meeting from last month might subtly influence their future decisions on moderating rate cuts in 2025, despite contributing to pushing cryptos to record highs.
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2025-01-18 01:12