As a seasoned analyst with over two decades of market experience under my belt, I find the recent surge in Bitcoin price intriguing. The past 24 hours have seen BTC rally nearly 3 percent, reaching a high of about $62,508 before retracing towards $62,138 – a move that has caught my attention.
Bitcoin‘s price surged approximately 3% over the last 24 hours, peaking at around $62,508 before dipping to $62,138 during Thursday’s mid-London session. This upward trend has kept Bitcoin above its 50-day Moving Average (MA) for two consecutive days and pushed it past the 50% mark on the Relative Strength Index (RSI).
Although there’s been a ‘death cross’ occurring between the 50 and 200 moving averages recently, Bitcoin’s price has built a strong foundation of support at around $53,697 since early July. This repeated occurrence forms what is known as a ‘triple bottom’, which combined with a bullish divergence on the daily RSI (Relative Strength Index), suggests a potentially positive trend for Bitcoin prices moving forward.
As the final quarter approaches, marked by a generally optimistic cryptocurrency forecast, I anticipate that the value of Bitcoin will surge towards a record-breaking peak before the year’s end.
Top Reasons Why Bitcoin Price Pumped Today
In simple terms, the surge in Bitcoin’s price over the past day can be attributed to the Federal Funds Rate decrease, which marked the beginning of quantitative easing. Importantly, the Federal Reserve reduced its key interest rate by 0.5%, contrary to the predictions of Wall Street analysts who anticipated a 0.25% reduction.
Consequently, the U.S. has decided to align with the European Central Bank (ECB) and the Bank of Canada by reducing interest rates in an effort to stimulate their respective national economies.
As an analyst, I’m observing that we’re in the gold price discovery phase, which suggests potential growth. In light of this, I anticipate Bitcoin will spearhead a significant bullish recovery among altcoins in the upcoming period. Historically, there’s been a correlation between the prices of gold and Bitcoin, primarily due to their roles as safe-haven assets.
Gold is trying to tell us something
— Charles Edwards (@caprioleio) September 18, 2024
Currently, the amount of Bitcoin stored on centralized exchanges remains at a relatively low level compared to previous years, hovering around 2.35 million. This is a decrease from over 2.7 million at the start of this year. The main reason for this decrease is increased demand from institutional investors and US spot Bitcoin Exchange Traded Funds (ETFs).
In simpler terms, MicroStrategy Inc, a company listed on NASDAQ under the ticker MSTR, has declared its plan to gather approximately $800 million in the near future, with the intention of buying additional Bitcoins. At present, MicroStrategy already owns over 244,800 Bitcoins, which makes up more than 1% of the total amount.
Over the last fortnight, American Bitcoin ETFs have seen an influx of over $540 million in cash. This has led to a substantial decrease in the worry of additional cryptocurrency collapse, as the Bitcoin Fear and Greed Index surged from 33% fear earlier this week to approximately 49%, indicating a neutral state.
What Next?
If the bulls continue to dominate the market, it’s likely that Bitcoin’s price will attempt to reach its record high again in the short term. But for this to happen with certainty, Bitcoin needs to repeatedly close above $62,000 over the next few days. If it does, we could see a surge towards $68,000.
$BTC bulls have Successfully Reclaimed the 60k Resistance area once again.
In the near future, there’s a strong possibility that Bitcoin might encounter resistance around the 68k level. 🚀#Crypto #Bitcoin #BTC
— Captain Faibik 🐺 (@CryptoFaibik) September 19, 2024
If the bulls can’t hold up the ongoing upward movement, there’s a possibility that the leading cryptocurrency might drop back to around $54k, but it may recover again during the last three months of the year.
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2024-09-19 12:08