The Bitcoin price remarkable recovery hit a wall as investors reflected on the relatively weak Coinbase earnings. BTC is trading at $66,718, which is a few points below the all-time high of more than $68,000.
Key catalysts for BTC
While the Bitcoin price has retreated slightly in the past few hours, there are some top catalysts that could push its price higher.
First, this decline is partly because investors are just taking a breather. Historically, an asset’s price tends to experience some weakness after making a parabolic rally. For example, Tesla shares have declined by more than 10% in the past two days.
Second, the main reason for the decline is not a cause for worry. The sell-off started when Coinbase published relatively weak quarterly results. The company said that the number of active users declined sharply in the third quarter. At the same time, the company’s revenue missed estimates by more than $200 million.
While these results were weak, they were not a surprise. As you recall, most cryptocurrencies remained calm in the third quarter. We only started seeing elevated activity in mid-July, when Bitcoin found a floor at around $30,000. Therefore, many people exited the industry during that period.
At the same time, recent results by companies that deal with cryptocurrencies have been relatively weak. For example, Robinhood reported a sharp drop in Dogecoin trades. Similarly, Square reported weak Bitcoin earnings.
Third, the fear and greed index gauge shows that investors are still greedy. The index is currently at 75, which is a sign of greed. This level is slightly below where it was last week. In most cases, Bitcoin does well when it is in the greed zone.
Fourth, the Taproot upgrade is coming in the coming week. This is a major update that was agreed by developers a few weeks ago. The upgrade will lead to faster transactions, more privacy, and smart contracts. It will be the biggest upgrade in four years.
Bitcoin price prediction
The daily chart shows that the Bitcoin price has been in a string bullish trend lately. The coin surged to an all-time high. As it did this, it moved above the important resistance at $65,190. Now, an important pattern has emerged since the coin is attempting to retest this level.
In technical analysis, this pattern is known as a break and retest and is usually a bullish sign. Therefore, this is the fifth reason why I believe that Bitcoin will cruise to $70,000 soon.
