By the year’s end, two factors can potentially boost the bullish case for Bitcoin. Those are the dollar’s weakness and gold’s rally. Throughout 2021, the Swiss investment banking giant UBS’s strategists forecast gold to rally continuously. The prediction is in line with the fundamental weakness of the United States dollar against other reserve currencies.
Traders become more cautious concerning the price trend of Bitcoin in the near term. It is mainly because of the United States dollar starts to find some footing in the run-up to the United States election.
Meanwhile, technical analysts closely observe two important technical levels at $10,000 and $10,500 for the price of Bitcoin. Losing the ten thousand dollars support area can lead to a major pullback, as Cointelegraph reported. The whales’ movement indicates that the $9,800 support region has weakened. Thus, it might cause a more significant correction.
The United States and Bitcoin
Edward Morra is a cryptocurrency technical analyst. He said that he remains bearish until Bitcoin closes back above $11,000. Thus, it is the closest support daily, looking for a reaction at -$10500-10450.
Bitcoin has not seen three positive consecutive quarters. That is what historical data is showing.
So Historical data is not in favor of Bitcoin. To record an all-time high by the end of 2017, Bitcoin saw five positive consecutive quarters, from late 2016 and 2018.
Analysts attribute that historical rally to two major factors. One is that Bitcoin saw massive mainstream frenzy major markets, including the United States and South Korea. Second is that Bitcoin came off a block reward halving in July 2016. It is a generally bullish milestone event for the network.
A block halving has a positive impact on the Bitcoin price. It is because it has a direct effect on its newly issued supply.
That is the situation in the United States.