As a seasoned crypto investor with a decade of experience under my belt, I find myself increasingly optimistic about Bitcoin’s future. Having weathered numerous market downturns and bull runs, I have learned that patience is the key to success in this volatile yet potentially lucrative market.
Bitcoin‘s price has remained relatively stable near $58K since July, having solidified a support level around $54k. The primary cryptocurrency is exhibiting signs of a potential weekly reversal pattern, characterized by a possible triple bottom and increasing divergence on the Relative Strength Index (RSI). Additionally, Bitcoin’s price in the weekly timeframe has recovered from an uptrend line that started at the end of 2022, following the downfall of FTX and Alameda Research.
On the other hand, there’s a chance of temporary downward fluctuations in the value of Bitcoin, potentially pushing it back towards the $54k support point. This could happen before another rise towards its record high. The continuous impact of the ‘death cross’ – the intersection of the 50 and 200 Moving Averages on the daily chart – has been a significant factor in the medium-term Bitcoin price recovery process.
Nonetheless, the rising Bitcoin dominance and market confidence bolster the long-term bullish sentiment. From the historical data analysis, Bitcoin price tends to rebound in a bullish outlook in October, which has thus been baptized ‘Uptober’.
Rising Bitcoin Demand
In the last 24 hours, there’s been a significant increase in the purchase of Bitcoin by institutional investors and nations, as well as a surge in demand among long-term holders. This trend is evident despite a recent sell-off by short-term investors. Meanwhile, Tether, a stablecoin issuer, has minted 1 billion USDT in the same period, which indicates growing buying interest, given its low 24-hour volatility of -0.1%, a market cap of $118.74 billion, and a volume of $42.62 billion.
Recently, it’s been uncovered that various nations own Bitcoin, and most recently, the government of Bhutan has shared details about their holdings. They have over 13,000 Bitcoins, which equate to a value exceeding $780 million.
A nation in South Asia is adding itself to the expanding roster of countries amassing Bitcoins as a strategy to tackle escalating debts. For example, President Nayib Bukele of El Salvador declared on Sunday that the country aims to operate independently of any debt-financing scheme by 2025.
On September 30th, for the first time in many years, we’ll submit a fully-funded budget to the Legislative Assembly, a feat accomplished without borrowing a single penny for current expenses, as Bukele pointed out.
In recent times, I’ve been observing that El Salvador has consistently added one Bitcoin to its reserves daily for several months now. As of the present moment, this accumulation amounts to approximately 5,875 Bitcoins, which translates to over $331 million in value.
Today, BlackRock’s IBIT took the lead among U.S.-based Bitcoin Exchange-Traded Funds (ETFs), as it saw significant cash inflows, contrasting with the cash outflows from Grayscale’s GBTC. The data from the market shows that U.S. spot Bitcoin ETFs recorded a net cash inflow of approximately $12.9 million on Monday.
High Impact Economic News
Following years of anticipation for a decrease in U.S. inflation, it’s predicted that the Federal Reserve will lower interest rates for the first time on Wednesday, September 18.
There is now a 69% chance of a 50 bps interest rate cut at Wednesday’s FOMC Meeting 🚨
— Barchart (@Barchart) September 17, 2024
According to current market feelings, there’s about a 2 out of 3 chance that the Federal Reserve will lower interest rates by half a percentage point tomorrow. This move could prompt Bitcoin to increase in value, both immediately and over the long term. Furthermore, the US dollar index is trending downwards as BRICS nations are progressively switching from American bonds to Gold and Bitcoin.
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2024-09-17 10:45