By Michael Scott
Crypto analysts give a cautious outlook, citing potential consolidation with Bitcoin and Ethereum set to encounter critical resistance levels.
The US market research firm grants Bitcoin and Ethereum a neutral rating, indicating they edge closer to critical resistance levels. Nonetheless, the experts admit that BTC and ETH could still attract substantial attention when they blast through.
The Bitcoin price has retreated 1.3% to $66,189.42 while Ethereum tumbled 2% to $2,567.87 in the past 24 hours, per CoinGecko data. Market analysts downplay the short-term dip with an optimistic call for a potential breakout.
Are Geopolitical Factors Influencing BTC Price?
Crypto exchange StealthEX Maria Carola attributes the BTC price movement to geopolitical factors. The chief of Cayman Islands-based crypto platforms considers that Donald Trump is establishing a stronger position as the election date edges closer.
Carola observed a strengthening candidacy of a GOP candidate two weeks to the election date will positively impact the BTC price. Polling platform FiveThirtyEight illustrates that Trump’s candidacy has gained by 0.5% since the onset of October. Nonetheless, Kamala Harris still leads with 48.2%, slightly ahead of Trump’s 46.4%.
Despite the current slip in Bitcoin price, Carola forecasts BTC will surpass the psychological threshold of $70K by the end of October. Nevertheless, the StealthEx executive is cautious about Bitcoin setting a new peak immediately.
Carola considers that other global factors will influence the Bitcoin price movement. Notably, she pointed out that the Middle East conflict and stablecoins regulations are potential triggers towards unexpected shifts in the market.
In its Tuesday note, QCP Capital considers Bitcoin and Ethereum prices hovering near the critical resistance levels. The trading firm analysts illustrate that the assets are below their July highs, though acknowledged BTC is within the $70K and $2.8K for ETH.
The Singapore-based crypto firm revealed that it would attract substantial retail attention if the two assets cleared their levels. Nonetheless, they ruled out the existence of major catalysts this week. Consequently, the analysts expect the BTC and ETH will hover within the narrow range though stage attempts to break higher.
The QCP analysts hold the election and deliver a zero-sum scenario for the equities and sector winners reliant on the outcome. The analysts added that the candidates contesting for the US presidents appear more crypto-friendly, unlike in the past administration. Consequently, the firm indicates that weakness in equities could prompt the relocation of the capital to crypto assets.
Cautious Outlook for Bitcoin and Ethereum
Fairlead Strategies provided a cautious outlook, classifying BTC and Ethereum as neutral rated across the short to long term. The US-based research firm considers Bitcoin to be within a critical juncture and is testing the trendline resistance of $67,000.
The analysts observed that the BTC hit the counter-trend sell signal during the weekend. The trigger could translate to several weeks of consolidation within the current price levels.
The Fairlead analysts consider the BTC is within the proving ground as the largest crypto by market value tests the trendline near $67,700. They retained the support levels near $59.8K while the resistance remains at $67.7 and $73.8K.
The Fairlead analysts’ outlook aligns with the position of Zerocap chief investment executive Jonathan Wet. The expert indicated that Bitcoin’s rise beyond $70K is on course with no visible signs of slowing down.
Wet opines that several tailwinds are converging towards stimulating the bullish steam needed for BTC to print a new all-time high. Notably, the investment executive considers the political developments witnessed in the US to be fueling optimism that the crypto industry will witness favorable policy.
Fairlead notes that Ethereum portrays signs of upside exhaustion. The analysts consider ETH to be facing resistance of nearly $2,807, though it is retaining support of around $2,486. The inability of ETH to blast beyond the resistance levels could usher in a short-term corrective phase. However, BTC and ETH would likely struggle within the consolidation phase unless they decisively overcome the resistance hurdles.