Bitcoin Holds Key Support Level, Eyes Next Upward Phase
Bitcoin's recent price action has been closely watched as it held onto its key support level around $78,000 after a sharp intraday drop. This increase in holding power suggests further gains are possible.
Crypto trader DonAlt, who made the assessment on X (formerly Twitter), believes that bitcoin will soon enter another upward phase. Since August, bitcoin has shown strong momentum and extended its third-quarter recovery, rising from around $64,700 to a recent high of nearly $81,000.
Despite brief dips below $80,000 and into the $77,000 range, buying interest remained strong after the correction, with demand confirmed below $78,000. This stability has led many to believe that bitcoin will soon break above its upper resistance level around $81,000.
The market's attention is also on institutional buying, which continued despite increased end-of-month volatility. Strategy, a company led by Michael Saylor, purchased an additional 4,603 bitcoins for approximately $369.7 million between August 24 and 30 at an average price of $80,318.
Bitcoin's recent moves have been reflected in its monthly and quarterly performance, with a third-quarter return of around 32.48%, significantly higher than the historical average of 7.94%. This strength follows a 22.2% drop in the first quarter and a 14.09% drop in the second quarter.