As a seasoned crypto investor with a decade of experience under my belt, I find myself intrigued by the current state of Bitcoin. After witnessing numerous bull and bear markets, I’ve learned to be patient and take cues from historical trends. The recent break past $64,000 is a testament to the resilience of this digital asset, but I remain cautiously optimistic about the upcoming consolidation phase.
After Fed Chair Jerome Powell hinted at potential rate cuts in September, the price of Bitcoin surged to $64,000, exceeding its resistance level between $59,000 and $62,000. Financial experts predict that it may continue climbing towards $70,000 and possibly set a new record high. However, before this happens, Bitcoin might undergo a brief period of stability for several weeks.
Bitcoin Price Consolidation
For about six months now, the value of Bitcoin has been going through a period of stabilization, or consolidation – this is the longest such stretch it’s experienced. Yet, it’s important to note that before reaching its all-time high prior to the Bitcoin halving in April, Bitcoin’s price increase happened incredibly quickly. This means that the current consolidation phase serves as a counterbalance to the swift price rise seen earlier.
crypto analyst Rekt Capital emphasized a current period of crypto accumulation, noting that this phase hasn’t yet reached its longest duration within the cycle. Last year’s similar accumulation period in 2023, which preceded the price breakout, lasted approximately 224 days.
According to Rekt Capital’s analysis of past trends, there’s a possibility that Bitcoin might experience a significant surge around October 2024, following the pattern observed after previous halvings. This predicted spike could happen as early as late September 2024.
#BTC
Bitcoin has been consolidating for almost 6 months
But this current ReAccumulation Range isn’t even the longest one in this cycle
From formation to breakout, the 2023 ReAccumulation lasted longer at 224 days
If history were to repeat, then Bitcoin would breakout in…
— Rekt Capital (@rektcapital) August 25, 2024
Bitcoin ETF inflows accelerated after hints from Powell about potential interest rate cuts, indicating that institutional investment in Bitcoin is growing again at a faster pace. According to analysts at QCP Capital, the price of Bitcoin is expected to remain within the $61k to $70k range while markets await crucial data such as US PCE inflation figures and the latest US initial jobless claims report.
Additionally, the market is experiencing a surge due to anticipation of interest rate reduction, which in turn boosts investors’ trust, as implied volatilities (IVs) consistently decrease across various time periods in the major sectors.
BTC Open Interest Data
After the recent move on Friday, the Bitcoin’s open interest has not seen a substantial increase compared to past occurrences. This implies a lower likelihood of an immediate complete reversal as there are fewer active long positions currently.
In other words, it’s crucial that the bulls continue their strong performance throughout the upcoming week since they need to keep the price above the previous peak at $62,800 for now.
#Bitcoin Friday’s move didn’t elevate Open Interest as much as it had done in the past.
Makes this less susceptable to one of those instant full retraces as there’s less longs to squeeze out.
Still, I think it’s key to hold on to the previous local high at ~$62.8K to keep the…
— Daan Crypto Trades (@DaanCrypto) August 25, 2024
Read More
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- TON PREDICTION. TON cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- Strongest Magic Types In Fairy Tail
- EUR INR PREDICTION
- TAO PREDICTION. TAO cryptocurrency
- GLMR PREDICTION. GLMR cryptocurrency
- GBP USD PREDICTION
2024-08-26 10:02