As a seasoned crypto investor with over a decade of experience navigating the volatile waters of digital currencies, I find myself cautiously optimistic about today’s Bitcoin price rally above $58K. My journey through this space has taught me that the crypto market is as unpredictable as a rollercoaster ride, but the potential for significant gains has always kept me hooked.
The price of Bitcoin increased by more than 3% in the last 24 hours, peaking at approximately $58,424. As it aims for a bullish surge during Q4, the primary cryptocurrency is making efforts to reclaim the significant support level near $58,000, having already found a stable base around $54,000. The Daily Relative Strength Index (RSI) indicates a potential triple bottom pattern.
In the heat of today’s Bitcoin surge, I find myself witnessing a significant rally in the overall crypto market. The market capitalization is currently soaring towards $2.12 trillion, climbing approximately 2 percent during the early hours of the European trading session.
Top Reasons Bitcoin Price Pumped above $58K Today
After wrapping up the US presidential debate between Donald Trump and Kamala Harris without discussing cryptocurrency matters, investors promptly sought insights from the Bureau of Labor Statistics for the monthly and annual Consumer Price Index (CPI) release. Moreover, yesterday’s CPI figures will significantly influence the Federal Reserve’s decision regarding the next economic adjustment set to be made next week.
Significantly, the US Consumer Price Index (CPI) yearly figures, which play a significant role in determining overall inflation, decreased from 2.9% to roughly 2.5%, the lowest since March 2021. This reduction has prompted Wall Street analysts to anticipate the Federal Reserve (Fed) to announce its first interest rate decrease next week. Nevertheless, Fed commissioners will also be examining today’s jobless claims and Producer Price Index (PPI) data.
Over the last 24 hours, Bitcoin’s price has been significantly affected by increased institutional interest, as indicated by the surge in cash flow towards Spot Bitcoin ETFs. On Monday and Tuesday, Fidelity’s FBTC saw the highest US Spot BTC ETFs inflows, followed by a more moderate demand on Wednesday.
Based on recent market statistics, U.S. Bitcoin ETFs experienced a collective withdrawal of approximately $44 million on Wednesday, with the ARK 21Shares Bitcoin ETF (ARKB) accounting for around $54 million of that amount.
Today, the value of Bitcoin peaked at an impressive $58,000. The general feeling among individual investors seems to be turning increasingly optimistic. Notably, wallets containing less than 1 Bitcoin currently account for the largest proportion of the total supply in the past seven months.
However, an ideal setup for crypto to rebound back to all-time high levels would…
— Santiment (@santimentfeed) September 10, 2024
Currently, it’s evident that large Bitcoin investors (often referred to as “whales”) have stepped up their buying pace, even amidst significant sell-offs by BTC miners and short-term holders. To illustrate this trend, a whale investor recently withdrew approximately 800 Bitcoins, equivalent to over $45 million, from Binance within the last day.
What Next?
Although Bitcoin’s price has risen above $58K lately, there remains a sense of apprehension that the crypto market might experience a downturn in September, followed by a bullish recovery in the last quarter. The Fear and Greed Index for Bitcoin decreased from approximately 37% to around 31% during this price rise.
Looking at the technical side, it’s possible that the Bitcoin price might dip toward a supportive zone around $51,000 to $54,000 in the short run. However, after this potential decline, we could see another record-breaking high.
Conversely, if Bitcoin consistently closes below $51K, it is likely to move towards the significant support level approximately at $46k.
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2024-09-12 13:09