Bitcoin Poised for Breakout but Tied to Stock Market Moves | November 8, 2024

Bitcoin is holding up well, showing strength after its recent breakout. But this move still needs to be confirmed, so don’t get too confident just yet. If the S&P 500 manages to push higher, like above 6,000, that could give Bitcoin the extra boost to keep climbing. In the short run, the next big level to watch is around $80,000, but that’s likely where we’ll see a real pullback.

So, where would that pullback land? Think about it this way: once Bitcoin breaks above its all-time high of $74,000 and then runs up to $80,000, it usually retraces. The first support would be back at $74,000, the old resistance level. This is what’s called the “scene of the crime” retrace — basically, where the breakout happened. The idea is that after a breakout, the price often comes back to that spot to test it as support before continuing higher.

Remember, Bitcoin is pretty tied to what’s happening in the stock market. If the S&P 500 keeps moving up, Bitcoin probably will too. Keep an eye on these levels and pay attention to how both markets are moving.