Cryptocurrency prices wavered on Thursday morning as the recent rally lost steam. Bitcoin moved slightly below the resistance point at $65,000, while the 24-hour volume dropped by 20.9%. Other altcoin prices also moved downwards.
Bitcoin’s retreat coincided with the softness in Wall Street as the Dow Jones, Nasdaq 100, and S&P 500 indices pared back their recent gains.
Still, numerous catalysts could push Bitcoin higher in the next few days. First, there are signs that stablecoins have started moving back into the market. Data shows that their market caps have risen to a record high, which is a positive sign for Bitcoin and other altcoins since they are used to handling transactions.
Second, there’s been an increase in whale activity. Recent data has shown that many large Bitcoin holders have been adding more Bitcoin to their holdings. These holders have acquired 1.45 million Bitcoins this year, which is a significant amount.
Third, there are indications from geopolitics that could have an impact on Bitcoin prices. Donald Trump has issued a warning about the potential for World War 3, a situation that could make Bitcoin more attractive as a safe haven asset.
At the same time, the technical indicators are supportive, as depicted in the chart below. The price of Bitcoin has formed a pattern on the chart known as a falling broadening wedge, shown in green. This pattern is typically seen as one of the most bullish signs in the market.
Additionally, Bitcoin has formed a three-drive pattern, indicated in purple. If this pattern plays out as expected, it could be a bullish indicator, especially because it is now in the third wave. Furthermore, Bitcoin has remained above the 100-day and 200-day moving averages.
As a result, it is likely that the price of BTC will continue to rise as buyers aim for the upper boundary of the falling wedge at $71,300.
Such a move would be good for most altcoins since they usually rally when Bitcoin is doing well. Some of the most notable altcoins that could benefit are IOTA, EOS, and Celestia TIA.
IOTA and EOS token prices have risen by over 33% from their lowest point this year, but they remain sharply below their YTD highs. Celestia has jumped by 51% and remains significantly lower than the YTD high. Therefore, Bitcoin’s rebound will lead to more upside in the coming weeks.
