The world's most famous cryptocurrency defies expectations and faces new resistance, as geopolitical and economic factors play in its favor
The price of bitcoin (BTC) is on an upward trend in recent days, registering an increase of 0.29% this Wednesday at the time of this report. Currently, bitcoin is trading at USD 67,268, after facing resistance at USD 68,500. This momentum is favored by speculation about economic stimulus from China and growing support for presidential candidate Donald Trump, who promised to reduce regulations on the crypto sector. These political, geopolitical and economic factors are aligning in favor of bitcoin.
Bitcoin continues its rise, facing new market resistance / TradingView
Geopolitical, political and economic factors in favor of bitcoin
Influence of US politics
Presidential candidate Donald Trump declared his support for bitcoin, promising to ease regulations affecting the sector. On the other hand, Democratic candidate Kamala Harris proposed programs to encourage the use of cryptocurrencies in African-American communities, which could increase the adoption of these technologies.
Tensions in the Middle East
The relative calm in the Middle East, following Israel's announcement not to attack oil facilities in Iran, contributes to market stability. This allowed bitcoin to overcome the resistance of USD 66,500.
US monetary policy
The dollar began to slow down its recent climb, with forecasts of two interest rate cuts of 25 basis points. This favors risk assets, including cryptocurrencies. In addition, recent unemployment data in the US suggests that the Federal Reserve could continue to relax its monetary policy.
Technical analysis and market speculation
Bitcoin is above the 25-day and 50-day exponential moving averages, indicating a short-term bullish trend. However, the relative strength index (RSI) at 73.66 points suggests a possible overbuying. Low trading volume could signal bullish exhaustion.
Open interest and institutional demand
Open interest in bitcoin futures hit a record high of $39.22 billion, reflecting slight bullish pressure in the market. Institutional demand has also been significant, with $373.30 million inflows into ETFs, led by IBIT.
However, in the spot market, net capital flow shows outflows or declines of $232.39 million over the past 24 hours, according to Coinglass data. This suggests that some cryptocurrency traders in the spot market are liquidating some positions at the high prices that the world's leading cryptocurrency is registering.
Despite the challenges, bitcoin continues to show strength in the market. The combination of political, economic and technical factors suggests that the cryptocurrency could continue its rise, although investors should be on the lookout for possible corrections.
Disclaimer: This news is informative and does not constitute financial advice. Investors should conduct their own research before making investment decisions.