As a seasoned analyst with a knack for deciphering market trends and a deep-rooted appreciation for the crypto landscape, I find myself intrigued by the current state of Bitcoin (BTC). The confluence of factors – China’s stimulus package and a potential Trump presidency – seems to be stirring optimism among investors.
On Monday, Bitcoin (BTC) surged over 2% beyond $64,500, indicating a bullish trend. The positive news of additional stimulus in China and the rising popularity of pro-cryptocurrency candidate Donald Trump in polls may be fueling investor optimism about Bitcoin’s future prospects.
China and Trump boost Bitcoin
Despite no specific numbers being disclosed by Chinese officials, it’s clear that a stimulus package was introduced over the weekend. This move is expected to invigorate the Chinese stock market and potentially have indirect effects on the cryptocurrency sector as well.
Following some lackluster performances by Kamala Harris during her interviews as the Democratic nominee, public opinion seems to be shifting in favor of Donald Trump. As per Polymarket, the world’s largest prediction market, Trump currently holds a lead with approximately 54.2%, while Harris trails at 45.3%.
It seems that Democrats are somewhat open to cryptocurrencies, but Donald Trump has wholeheartedly endorsed them. If Trump were to win the presidency, this could significantly bolster the crypto industry.
$BTC price heading to top of bull flag
On a brief analysis of Bitcoin ($BTC), we observe a breakthrough in the falling trend line, which appears as part of an “M” or W-shaped pattern. This breakout coincides with the neckline of the pattern. If this pattern fully forms, the projected upward movement would reach the top of the ascending trend line resembling a bull flag.
Huge bulls vs bears struggle this week
As we observe the Bitcoin chart, it appears the price is nearing the peak of a bullish pennant again. Could this be a fortunate moment for Bitcoin bulls? The Fibonacci retracement levels over the past seven months suggest that Bitcoin is currently testing the 0.618 level. Breaking through and maintaining above this point would mark an important step towards a potential breakout from the bullish pennant.
At the base of the graph, you’ll find two signs – one suggesting a downtrend (bearish) and another indicating an uptrend (bullish). Last week, the Stochastic RSI displayed a bearish crossover between these indicators. This suggests that the price trend may no longer be climbing. If bulls want to potentially reverse this trend by week’s end, they’ll need to increase their support for the price.
From my perspective as a crypto investor, I’ve noticed an encouraging shift: The Relative Strength Index (RSI) has flipped upwards after hitting a new high. Additionally, keeping its position above the 50.00 line suggests that the bullish trend is not slowing down, indicating that the bull market is continuing on its course.
This upcoming week is crucial for the bulls as they aim to sustain the rising trend in prices. However, it might prove challenging due to a recent dip in the Stochastic RSI on the weekly chart, suggesting a struggle between the bulls and bears has begun.
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2024-10-14 13:12