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The market for Bitcoin recently indicated that a reversal is imminent, which has sparked speculation that the one-year cycle may soon end. In the past, Bitcoin has generally followed a predictable pattern; however, the way the market is acting right now points to a possible break from this pattern.
The price of Bitcoin has been testing significant resistance in the last few days, and the accompanying chart indicates that this level is almost at the top of the cryptocurrency’s long-term declining channel at $66,000. This level has frequently served as a ceiling for Bitcoin, as it has never been able to decisively break past it. But recent signs suggest that the market may be changing.
For example, the spot premiums for Bitcoin and Ethereum are declining, which has not happened since June. The digital asset may be about to witness a major development, as indicated by this and the ongoing increase in the global M2 money supply, which is directly related to Bitcoin’s liquidity.
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The amount of $66,000 is the immediate resistance and one of the key price levels to keep an eye on. A bullish breakout may be indicated if Bitcoin is able to break above this level with significant volume. Traders are monitoring $62,000 as a critical support level in case of a decline. Subsequent collapses may point to a more significant adjustment. Last but not least, there is still psychological resistance at $60,000, and a decline below it may result in additional losses as traders reevaluate their holdings.
The narrative surrounding the Bitcoin rally is further reinforced by the global liquidity index hitting new highs. This implies that market liquidity is sufficient to sustain additional price increases which, if the trend continues, could drive Bitcoin toward new all-time highs. But volatility is to be expected, so the next few weeks will be crucial for the movement of Bitcoin’s price.
Even though there is a chance to break the one-year cycle, a lot will depend on how Bitcoin handles these crucial price points.
