Created on October 21, 2024
During the last week of trading, the value of Bitcoin continued its upward trend in a much less decisive manner than what happened the previous week. Currently, the upward push appears to be mainly motivated by the high probability of Donald Trump‘s victory in the next US presidential elections. Despite this, from a technical point of view the value of Bitcoin has started to show some possible weaknesses near the key area at €62,500 per Bitcoin.
- Last week the value of Bitcoin Euro rose by +10.28%, concluding the week at the €63,430 level per Bitcoin.
- From Forex technical analysis, the value of Bitcoin has been enclosed in a horizontal channel since reaching the absolute ceiling in March 2024, but over time the value began to slide downwards breaking strong key support levels until reaching of the €49,500 level for Bitcoin. After two months of consolidation, Bitcoin formed a double bottom and managed to reverse the trend by breaking the resistance level at €56,000 per Bitcoin and reaching our primary upside target at €62,500 per Bitcoin.
- From a fundamental point of view, the value of Bitcoin has been strongly influenced by market speculation related to the presidential elections due to the very high differences between the two candidates regarding the cryptocurrency sector. See what the best apps for buying cryptocurrencies are today.
Bitcoin Hopes for a Second Trump
Over the last few months, the value of Bitcoin has remained relatively constant while waiting for the next move capable of resuming the upward rally. Despite this, a series of factors followed, including geopolitical tensions and negative macroeconomic data, causing a continuation of the decline.
Last week, however, a factor appeared capable of changing the trend of Bitcoin: a significant change in the forecasts relating to the presidential elections in early November. In fact, after months of balance between the two candidates, Donald Trump would appear to be ahead of Democratic candidate Kamala Harris with a probability of victory of around 61.5%.
This factor has given a significant upward push to the cryptocurrency market due to policies implemented by Trump in favor of this factor including lighter regulation, a possible adoption of Bitcoin as a reserve currency by the central bank and greater general attention to the world of cryptocurrencies.
By comparison, the possibility of increasing taxes on capital gains generated from Bitcoin sales was discussed in Italy over the course of the week. Under this new proposal, Bitcoin capital gains taxes could increase from 26% to 42%.
Bitcoin Reaches Our Upside Target
Bitcoin forecast today: observing the structure of Bitcoin from a technical point of view it is possible to notice how last week the value of Bitcoin in euros made a very rapid trend reversal starting from the support level at €57,430 for Bitcoin up to the level of resistance identified as primary target at €62,500 for Bitcoin.
Thanks to this bullish push, last week was the most profitable for Bitcoin since July 15, 2024.
Bitcoin Weekly Outlook
- Current resistance level: €66,750 per Bitcoin near the all-time ceiling.
- Current support level: €62,000 for Bitcoin near the next key area
- Upside target: €66,750 for Bitcoin.
- Downside target: €57,430 for Bitcoin, the horizontal resistance level recently surpassed on the upside.
Considering the current trend of Bitcoin, the most probable weekly scenario is a continuation of the consolidation period above the key area before an upward recovery towards the next target identified with the previous absolute ceiling.
Nonetheless, especially if no major macroeconomic news is announced during the week, the consolidation period could characterize most of the week’s trading sessions. Stay updated on the latest events of reliable forex brokers today and rely only on the best consob authorized brokers for your trading.
