Bitcoin continues to trade within a crucial price range around $34,000, consolidating after its rebound last week. The upcoming Federal Reserve decision is expected to influence the cryptocurrency’s next move significantly. Observers note that if Bitcoin breaks through vital resistance at approximately $35,500 with daily closures, it could form a new path towards the $42,000 mark.
Over the last two years, Bitcoin has experienced a bear market, falling from an all-time high of $69,000 in November 2021 due to signals of a shift in Fed monetary policy. Nevertheless, buyers have been able to maintain Bitcoin’s value above the $25,700 support level, keeping optimism alive for future prospects.
- Fib 0.236 observed as crucial support following last week’s bounce
- $35,500 – $36,500 range seen as significant long-term resistance zone
- Daily closures above $35,500 necessary for bullish continuation
Long-Term Technical View on Bitcoin: Mixed Prospects
Taking a long-term technical view on Bitcoin, the cryptocurrency’s potential trajectory depends on its ability to hold onto critical short-term support levels, such as Fib 0.236, which turned into support during last week’s bounce. Although Bitcoin has been in a bear market for two years, many investors remain hopeful that the digital currency can break out of this prolonged downtrend if specific criteria are met and external factors align.
- Holding above crucial support levels necessary for positive long-term momentum
- Breaking through the $35,500 – $36,500 resistance range suggests a return towards $42,000
- Fed’s monetary policy decisions may have a significant impact on future prospects
Golden Cross indicator
Recently, Bitcoin witnessed a technical phenomenon called the ‘Golden Cross.’ This event occurs when its 50-day moving average (MA) crosses above its 200-day MA. Historically, this crossover is seen as a bullish signal by many traders and analysts, suggesting potential upward momentum for the cryptocurrency. Such patterns are keenly observed in the market, as they often indicate shifts in investor sentiment and can have implications for future price movements.
#Bitcoin just made a ‘Golden Cross’
50 DAY MA crossed the 200 DAY MA.Bullish! 🚀 pic.twitter.com/kw24sYzolQ
— Bitcoin Archive (@BTC_Archive) October 30, 2023
Ethereum Gaining Momentum, Faces Key Resistance Ahead
Meanwhile, Ethereum has been garnering attention as it breaks resistance levels and builds upward momentum. To continue its growth trajectory, Ethereum must surpass the key resistance at around $1,840. Analysts expect breakout targets of $1,910, $2,010, and $2,130 if this critical hurdle is breached.
In October, Ethereum managed to break the resistance line up to $1,660 and has since broken the falling triangle pattern dating back to April. Currently, the digital currency appears to have established the $1,770 resistance level as support. However, if daily closures fall below this threshold, it could potentially retest the $1,680 level, in line with the origin of its April downtrend.
- Successful conversion of $1,770 from resistance to support essential for continued growth
- Main resistance around $1,840 must be overcome to achieve higher targets
- A decline below $1,770 could trigger retests and continuation of bearish trends
Traders and investors should keep a close eye on pivotal price levels and key developments in governing policies for both Bitcoin and Ethereum. While these leading cryptocurrencies demonstrate resilience within their respective ranges, overcoming decisive resistances will be the true determining factor in realizing sustained bullish trends in the coming weeks and months.
