Technical Analysis: Bitcoin Remains In Key Trading Range Zone

Bitcoin's price is holding steady just below its record high of $109,000. This stability comes as a positive regulatory environment for cryptocurrency has been fostered, along with the possibility of a Bitcoin stockpile being created.

Recently, the former president called for this "Crypto Stockpile," carefully avoiding the term "reserve" to prevent any perceived threat to the U.S. Dollar. Although this news didn't cause an immediate price surge, the overall market sentiment remains optimistic. The S&P 500 reaching a new all-time high further illustrates this positive trend. Historical data suggests a correlation between a strong stock market and a strong cryptocurrency market, with Bitcoin often mirroring stock market movements.

From a technical analysis standpoint, Bitcoin is currently facing a resistance level between $108,000 and $110,000. A breakthrough this level could propel Bitcoin towards the next resistance zone of $120,000 to $123,000.

Conversely, strong support is evident around $95,000. If this level is breached, the price could drop to $90,500, and further down to $74,000, which aligns with the previous all-time high.

Savvy investors will continue to keep a close eye on risk assets like the stock market. A continued stock market rally is likely to support a Bitcoin rally. However, a stock market decline could trigger a rapid and significant drop in Bitcoin and the broader cryptocurrency market.