After nine months of trading within consistent price channels, Bitcoin is threatening to break out above a new all-time high of $73.7k and enter true price discovery. My price channels have been noted for their correlation with key Bitcoin movements through 2024. However, we’ve now hit the top of my channels for only the sixth time this year. All but once, Bitcoin retraced from the current price, and that was when we hit a new all-time high, indicating we’re either at a local top or a new era of price discovery is before us.
Currently traded at the top of a core price channel between $67.9k and $71.5k, Bitcoin will be around a price point it has only spent several days in throughout its history if it surpasses this key resistance. Between $71.5k and $73.7k, there is little price action to allow analysts to ascertain reasonable support or resistance.
Reviewing the spot order books and derivative positions does offer some basic insights. Coinglass data reveals several notable sell order blocks within the order book across major exchanges above the all-time high of around $76k. These areas could provide resistance should Bitcoin approach these prices.
Interestingly, there is a severe lack of liquidity for sell orders on perpetual futures markets on Binance above the all-time high. This could reduce resistance in futures markets if profit-taking does not immediately occur should Bitcoin enter price discovery.
Based on current market liquidity and the limited price action above the current price, potential support and resistance levels to watch above $73.7k include $76k and beyond. It is important to note that historical activity is not necessarily representative of future market activity, and market liquidity changes from moment to moment. The price channels presented in this insight are for educational and informational purposes only.
In addition to the potential resistance levels mentioned in the original article, it is also important to consider the impact of institutional investors on Bitcoin’s price movements. Institutional adoption of Bitcoin has been increasing steadily, with more companies and funds adding Bitcoin to their balance sheets as a hedge against inflation and economic uncertainty. This influx of institutional capital could provide additional support for Bitcoin’s price in the long term.
Furthermore, regulatory developments in the cryptocurrency space could also influence Bitcoin’s price trajectory. Increased regulatory clarity and acceptance of cryptocurrencies by governments around the world could attract more investors and traders to the market, driving up demand and prices.
Overall, while the key resistance levels above $73.7k are important to watch for potential price movements, it is essential to consider a range of factors that could impact Bitcoin’s price in the coming months and years. From institutional adoption to regulatory developments, the cryptocurrency market is constantly evolving, and investors should stay informed and adapt to changing conditions to make informed decisions.
