Bitcoin Price Faces Resistance as Analysts Now Weigh Pre-Election Consolidation
Bitcoin (BTC) and Ethereum (ETH) are approaching critical resistance levels, with experts indicating that both assets could attract significant attention if they break through.
The Bitcoin price has fallen 2% in the past day to $66,960, while Ethereum is down 3% at $2,630 during European trading hours, according to data from CoinGecko. Despite the short-term dip, market analysts are optimistic about a potential breakout.
Speaking with Decrypt, Maria Carola, CEO of Cayman Islands-based cryptocurrency exchange StealthEX, attributed Bitcoin’s price movement to geopolitical factors, particularly the strengthening position of Donald Trump in the U.S. election race.
“The recent strengthening of Donald Trump’s position just two weeks before the elections is positively impacting Bitcoin’s price,” Carola noted.
Polling site FiveThirtyEight, which derives its ranking of the candidates from many different national polls, currently shows that Trump has gained 0.5% since the start of October, but is still trailing behind Vice President Kamala Harris. At the time of writing, Harris is favored to win with 48.2% odds to Trump’s 46.4%.
Despite the current price dip, Carola expects Bitcoin to surpass the psychological threshold of $70,000 by the end of the week.
But she remains cautious about the potential for a new all-time high in the immediate future. Carola also pointed to broader global factors, such as the Middle East conflict and evolving regulations surrounding stablecoins, as potential triggers for unexpected market shifts.
In a note issued Tuesday, Singapore-based crypto trading firm QCP Capital also highlighted Bitcoin and Ethereum’s proximity to key resistance levels.
Both assets are yet to clear their July highs but are closing in on $70,000 for Bitcoin and $2,800 for Ethereum. “A break above these levels is likely to attract massive retail attention,” QCP Capital wrote. However, they noted that with no major catalysts expected this week, both cryptocurrencies are likely to trade within a narrow range while attempting to break higher.
The QCP analysts further said the election creates a zero-sum scenario for equities, with sector winners dependent on the outcome. “In contrast, both candidates are more crypto-friendly than the previous administration, so any weakness in equities may prompt capital to reallocate to crypto.”
Fairlead Strategies, a U.S.-based market research firm, meanwhile offered a more cautious outlook, maintaining a “neutral” rating on both Bitcoin and Ethereum for the short-, intermediate-, and long-term. In a note to Decrypt , the firm stated that Bitcoin is at a critical juncture as it tests trendline resistance near $67,700.
The analysts noted that Bitcoin triggered a counter-trend sell signal over the weekend, which could lead to a couple of weeks of consolidation around current price levels. “Bitcoin is at a proving ground as it tests trendline resistance near $67.7K,” Fairlead stated, adding that support levels remain near $59,800, with resistance at $67,700 and $73,800.
Ethereum is also showing signs of upside exhaustion, according to Fairlead. The asset faces resistance around $2,807, with support near $2,486. Should Ethereum fail to break through these resistance levels, a short-term corrective phase could follow. Both Bitcoin and Ethereum are likely to remain in a consolidation phase unless they can decisively clear these resistance barriers.
Edited by Stacy Elliott.
