Bitcoin‘s BTC/USD price remains subdued, trading at $67,900, a modest 1.2% gain on Friday morning.
What Happened: This comes despite reaching near $69,000 earlier in the week, according to CoinGecko data.
The leading cryptocurrency currently sits 8% below its all-time high of $73,737.
Ethereum ETH/USD also saw a modest 0.5% uptick, reaching $2,540.
Yet, analysts suggest the market could face new pressures as volatility and U.S. election concerns weigh on investor sentiment.
Speaking with Benzinga, Injective CEO Eric Chen noted that Bitcoin’s typical four-year cycle may be stretching into a longer phase, potentially leading to steadier but slower gains.
Injective CEO Eric Chen points to a shift from Bitcoin’s traditional four-year cycle, suggesting the cycle may now be extending, resulting in potentially steadier, longer growth instead of dramatic price swings.
“The bull market is going to last longer or taper in a more steady cycle,” Chen noted, as Bitcoin’s recent approach to $70,000 was met with resistance, showing a possible deviation from previous bull cycles driven by halving events.
Chen added that the outcome of the U.S. presidential election could trigger a substantial market reaction, with an accelerated growth stage or a further delay hinging on investor sentiment post-election.
In a note sent to Benzinga, Avinash Shekhar, Co-founder and CEO of Pi42, further highlighted Bitcoin’s volatility and consolidation phase, as year-to-date gains have narrowed from 56% to 52%, with investors becoming cautious amid economic uncertainty.
Shekhar expects that historical trends will push Bitcoin into a positive cycle in Q4, with potential to reach new highs by December.
Also Read: Institutional Bitcoin Investors Have Their Own Trading Strategies: Here’s One
“Bitcoin tends to enter a positive Q4 cycle,” he said, though the market may be disrupted by macroeconomic and political shifts, which continue to create tension among investors.
Ethereum, meanwhile, appears to be lagging, as the ETH/BTC ratio decline suggests a pivot in investor interest from Ethereum to Bitcoin.
Offering a technical analysis, Illia Otychenko, Lead Analyst at CEX.IO, warns of increasing bearish pressure, with several indicators signaling a possible downturn.
Bitcoin’s recent attempt to cross the $69,000 mark faltered, falling below the 20-day EMA, which had previously served as a dynamic support level.
“Momentum indicators…suggest that Bitcoin could face increased downward pressure,” Otychenko observed, adding that Bitcoin might retest $66,750 if it cannot hold the current levels.
He noted that the daily chart’s bearish divergence, combined with a weakening RSI, indicates that Bitcoin’s corrective phase could continue, particularly if it fails to break through key technical resistance points.
Otychenko also mentioned that a break below the 20-day EMA could lead to further declines, with the 200-day SMA as the next potential support level.
What’s Next: With experts divided on Bitcoin’s future trajectory, the upcoming Benzinga Future of Digital Assets event on Nov. 19 will provide a timely forum for deeper insights into the forces shaping the cryptocurrency market.
Read Next:
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.