As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends, including the dot-com bubble, the 2008 global financial crisis, and the rise of cryptocurrencies. In my humble opinion, the current state of Bitcoin presents a unique opportunity for both short-term traders and long-term investors.
The price of Bitcoin (BTC) dipped by approximately 2.1% in the past 24 hours, currently trading at around $58,791 on Monday during the mid-London session. Despite this dip, Bitcoin saw a surge of over 7% last week, hinting at a potential recovery. As we approach the final quarter of the year, there are signs that Bitcoin’s price might be gearing up for its parabolic phase. The daily trading volume stands at around $23.89 billion, while the market capitalization hovers around $1.16 trillion.
In recent times, the influence of Bitcoin has climbed significantly and peaked at approximately 58% today – a level not seen for many years. As per crypto analyst Benjamin Cowen’s predictions, this dominance is expected to surge towards 60%, but it will subsequently dip in 2025, setting the stage for the long-awaited altcoin season.
Midterm Targets for Bitcoin Price
Looking at the technical aspect, the downward trajectory of Bitcoin’s price, which started earlier in the year, appears to be abating. After bouncing back from a weekly support level above $54K, it seems that Bitcoin is now targeting another attempt to reach its record high in the coming days.
Based on insights from well-known cryptocurrency expert Ali Martinez, Bitcoin’s price in the short term is creating an upward trending channel. This pattern suggests that Bitcoin could potentially surge towards $62,000 if buyers successfully maintain the support at around $58,000. Conversely, a decline to $55,000 for Bitcoin might occur if the $58,000 support level cannot be sustained.
On an hourly timeframe, Bitcoin is currently following a parallel channel. If the lower limit maintains, Bitcoin could bounce back and potentially reach the middle or upper levels around $60,200 or $62,000. But if it falls below the support at $58,100, there’s a possibility of a decline towards $55,000.
— Ali (@ali_charts) September 16, 2024
On a weekly basis, Bitcoin’s price bounced back from its 50 Moving Average (MA), but it didn’t manage to surpass the 50% mark on the Relative Strength Index (RSI). This means that the coming few days’ closures will significantly influence the monthly closing value for Bitcoin.
Mixed Reactions from Whales
Although apprehension about additional cryptocurrency selloffs has been lessening recently, large-scale investors’ responses, as indicated by on-chain data, have been somewhat ambiguous. For example, a whale unloaded approximately 500 Bitcoins, valued at more than $30 million, earlier today, yet still retains around 300 Bitcoin units.
A whale sold 500 $BTC($30.07M) 12 hours ago before the $BTC price dropped.
As a researcher studying cryptocurrency trading patterns, I’ve noticed an intriguing case involving a particular whale and its Bitcoin (BTC) transactions. This whale executed three swing trades in total, but unfortunately, only the initial trade yielded a profit. The subsequent two attempts ended up as losses for this whale.
He still holds 259.6 $BTC($15.15M), with a total loss of more than $6M!
Address:…
— Lookonchain (@lookonchain) September 16, 2024
Last week, exchange-traded funds (ETFs) focused on Bitcoin in the U.S. saw a significant influx of over $403 million. These ETFs, spearheaded by Fidelity’s FBT, are projected to further accumulate Bitcoin as the United States gears up for its 2024 general elections.
Economic Outlook
With gold hitting a record peak today, it’s anticipated that bitcoin could mirror this trend in the short term. This optimistic outlook stems from the majority of traders who believe the Federal Reserve will lower its key interest rate on Wednesday, boosting investment appetite for assets like gold and bitcoin.
Consequently, US inflation has dropped substantially, falling below 3% compared to more than 7% in recent years.
Furthermore, both the European Central Bank and the Bank of Canada have reduced interest rates on multiple occasions this year as a means to boost economic growth within their specific areas.
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2024-09-16 12:43