Is Bitcoin Creating a New Support Level after a Strong Week?
It looks like Bitcoin is establishing a new support level that is higher than its previous one as it has held onto recent gains.
Bitcoin (BTC) is up to $63,329 (BTC/USD) after a week of gains. The coin jumped on Monday of last week, continued to climb slightly over the next few days, and then held onto its gains.
For Bitcoin to retain its earnings after several days of activity is very promising. We have not seen that from the coin for a while. In fact, the token has recently gotten into the habit of quickly losing any ground its gains. That has been the story week after week, and it has left investors feeling unsure of whether they should continue to put faith in Bitcoin.
Now, the crypto token is showing indications of a new support level. It had previously relied on $58-60K as a support level to fall back on after each surge or decline. Now, it looks like a new higher level may be created. If Bitcoin can hold onto its gains and then use the current level as a springboard for more growth, it may fall back to this same $63K level after a few days. That would be a move in a positive direction and would help to inspire more confidence in the coin.
Could Bitcoin Climb Much Higher from Here?
The leading crypto token is set to remain bullish, if factors continue to work in its favor. Right now, there are several factors at work that are helping keep Bitcoin high.
Recent economic data has spurred growth in the stock market and the crypto market, benefitting Bitcoin more than most assets. This digital currency has benefited from the recent unemployment report as well as decreased inflation. When the economy is doing well, investors are more likely to try out speculative assets like cryptocurrency. This market is still very volatile and will likely always be that way, but there is a bit more stability to it at the moment. Bitcoin is not as risky as it was in August, and that is helping to bring more investors into the fold.
Bitcoin could go a lot higher than it is right now thanks in part to the new interest rate cuts. Those cuts were a long time coming, and the US central bank finally made the cuts and made larger cuts than many analysts expected. This has spurred growth in the crypto market, and Bitcoin investors have further interest rate cuts to look forward to in 2025.
Bitcoin has also enjoyed increased visibility due to the ongoing US election. Cryptocurrency and especially Bitcoin have been a topic of conversation throughout the election and will likely continue to be so. Once the election is settled, we may see new legislation for cryptocurrency as well, which could make it harder for crypto platforms to operate but could also make investors feel safer thanks to the increased oversight that is likely to be in place.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals