As a seasoned researcher with a decade-long career in the financial markets under my belt, I’ve witnessed the ebb and flow of various asset classes. The current Bitcoin price action at around $62,000 is an interesting development, to say the least.
As an analyst, I find myself observing a significant resistance for Bitcoin‘s price at roughly $62,200. Given this obstacle, it’s plausible that we might witness a swift correction. This potential reversal could prolong the current seven-month phase of consolidation. However, despite this temporary sideways price action, my long-term perspective on Bitcoin remains optimistic.
Bitcoin Price Trades at $62,000 Today
Following a 2.20% rise on Friday, Bitcoin is currently valued at around $62,000 today. Weekends tend to have lower trading activity for apparent reasons, which might lead to higher volatility in the crypto market, including Bitcoin.
BlackRock: BTC Could be a Hedge Against Weakening US Dollar
BlackRock Highlights the Significance of Bitcoin Ownership at Brazil’s 2024 Digital Asset Conference, Amid Bitcoin Trading Nearly $62K. The investment giant emphasized that the buying power of the U.S. dollar has significantly decreased from a dollar’s worth in December 1913, when the Federal Reserve system was established, to just $0.03 by December 2023.
As a crypto investor, I’ve come across an interesting comparison in another slide between US Treasuries, Gold, and Bitcoin. While it’s true that cryptocurrencies like Bitcoin can be quite volatile, it’s also important to note their unique qualities. For instance, Bitcoin stands out as a potential global monetary alternative due to its fixed supply, decentralized governance, and lower transaction and storage costs compared to traditional assets. In essence, these traits make Bitcoin an intriguing option for investors seeking alternatives to conventional investment avenues.
Looking at Bitcoin’s market cap of only $1.3 trillion, it is evident that it is still in its infancy when compared to Gold’s massive $14 trillion and the US Treasury’s staggering $25 trillion. Moreover, Bitcoin serves as an asset within the inflation hedge category, making it a potential contender against the eroding buying power of the US dollar.
BTC Price Forecast: More Pain Ahead?
Over the course of three days, the BTC price graph demonstrates a visible effort by bulls to reverse the trend. This attempt is evident due to the formation of higher lows and higher highs in September, following several months of falling lows and highs. The Bitcoin chart additionally indicates that surpassing the $65.5K mark will be crucial, as this level has functioned as both a significant support and resistance point over the past seven months.
Should the current resistance level be broken and transformed into a support level, it could potentially spark a surge towards $70K. Given Bitcoin’s historically bullish trend during the fourth quarter, it would not be unexpected if Bitcoin were to aim for a fresh record high (new all-time peak).
Each day’s Bitcoin chart indicates bulls trying to return to the price range of around $63,900 – $65,000, which has been a challenge in the past. If buyers can’t push through this resistance, there might be a slight drop, taking the price down to another resistance zone between $60,300 and $61,800. Here, bears may find it tough to push Bitcoin lower. If they manage to break the $60,300 barrier, expect a decrease of around 4% to 5%, with the next significant support levels being at approximately $57,990 to $57,200.
In summary, the overall forecast for Bitcoin is highly optimistic as it’s trying to establish a higher peak and trough in September, potentially indicating new record highs ahead. However, the daily chart indicates that there might be further price drops if Bitcoin can’t surpass the $65K resistance point.
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2024-10-05 13:00