As a seasoned crypto investor with over a decade of experience under my belt, I find myself increasingly optimistic about Bitcoin’s potential growth following the recent Fed rate cut and the subsequent price rally. With a fully diluted valuation of $1.34 trillion and a daily traded volume of $26.6 billion, Bitcoin is poised to break through its resistance level at around $64K and potentially reach new heights above $71K in the coming weeks.
After the first Federal Reserve interest rate reduction since the Covid-19 pandemic, Bitcoin‘s price climbed by over 7 percent last week, reaching a significant resistance point of approximately $64,000. This leading cryptocurrency, valued at around $1.34 trillion when fully diluted and with an average daily trading volume of about $26.6 billion, is on the verge of a significant bullish surge following six months of bearish consolidation.
Over the course of each day, Bitcoin’s price has encountered a notable barrier around approximately $64,200 – a height reached in August that also aligns with the 200-day Moving Average (MA). If we see consistent closes exceeding both the 200-day MA and the $64,000 level over the next few weeks, it’s likely that Bitcoin will surge past $71,000.
However, a possible retrace below $60K could happen before the onset of the macro parabolic rally.
Rising Bitcoin Demand from Institutional Investors
Over the last while, I’ve noticed an impressive surge in institutional interest towards Bitcoin. Given the positive correlation between Bitcoin and gold that we’ve seen over the past years, it seems more long-term investors are putting their faith in Bitcoin’s impending upward trend. In fact, just recently, gold prices have skyrocketed to a fresh all-time high of over $2,602 during the early European session on Monday. This development has only served to strengthen my conviction that digital currencies like Bitcoin could play a significant role in our financial future.
Long term Bitcoin holders are aggressively buying!
In the last 2 months, there has been a greater increase in long-term investors holding Bitcoin compared to any other 2-month span over the previous 3 years.
Someone knows something…
— Nic (@nicrypto) September 22, 2024
Over the last two months, long-term investors have acquired more Bitcoins than they did in the previous three years, leading to a significant decrease in the supply of Bitcoin on centralized exchanges. This decline has gone from approximately 2.7 million units in March to around 2.3 million today over the past six months.
As an analyst, I’ve observed a significant impact of U.S. approved spot Bitcoin ETFs on the increasing interest in Bitcoin among long-term investors. In just the past fortnight, major issuers like Fidelity with their FBTC product have amassed over 13,000 Bitcoins, equating to approximately $800 million in value.
Toward the close of the previous week, the United States Securities and Exchange Commission (SEC) gave the green light for the market offering and exchange of options based on BlackRock’s IBIT. This significant move is expected to contribute significantly to the widespread acceptance of this product.
Last week, MicroStrategy Inc (NASDAQ: MSTR) declared the successful completion of an oversubscribed sale worth $1 billion. With this, they acquired an additional 7,420 Bitcoin units, priced approximately at $61,750 each. As a result, MicroStrategy now boasts a total of 252,220 Bitcoin units, which equates to a value exceeding $15 billion.
What’s Next?
The cost of Bitcoin is projected to surge significantly during the final three months of the year, potentially reaching $100,000. Yet, an increasing number of investors are broadening their portfolios by investing in the alternative coin market, in anticipation of an “altseason.
In the upcoming period, there are indications that Bitcoin’s control over the market might start to reverse on a larger scale. This is due to the formation of an ascending triangle (rising wedge) pattern over the last couple of months.
Read More
Sorry. No data so far.
2024-09-23 11:19