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BITCOIN ANALYSIS

Bitcoin

Bitcoin Price Nears $65K: Key Factors Behind the Surge

by Ouess
written by Ouess

Bitcoin has recently surged to a high of $64,955, largely due to Federal Reserve Chair Jerome Powell’s speech signaling potential rate cuts in September. This news has ignited a positive momentum in the crypto market, with its total market cap climbing over 4% to $2.27 trillion.

Altcoins Join the Rally

Major altcoins like Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) have also experienced substantial recoveries. The Crypto Fear and Greed Index notably bounced from 34 (fear) to 56 (greed) in just a single day, reflecting a strong rebound in market sentiment.

Why Bitcoin’s Price Is Rising

Bitcoin’s price has been targeting the $62,000 mark this month, with a notable 5% increase in the last 24 hours, pushing it close to $65,000. Here are the top five reasons fueling this rise:

1. Positive Sentiment from Fed Announcements

The recent Federal Open Market Committee (FOMC) Minutes and Jerome Powell’s Jackson Hole speech have provided strong indications of impending Fed rate cuts. These signals have significantly boosted Bitcoin’s price.

Dovish remarks from Fed officials, including Neel Kashkari and Mary Daly, along with their consensus on potential rate cuts starting in September, have encouraged cautious buying by investors. Although Powell did not specify exact cut timings, he highlighted a shift in monetary policy due to slowing inflation and a weakening labor market.

2. Technical Strength in Bitcoin Charts

Bitcoin charts are showing robust technical indicators with current trading above the $62K support level and approaching resistance at $65K. The daily timeframe reveals Bitcoin trading above the 50-DMA, 100-DMA, and 200-DMA, with expectations of a potential ‘Golden Cross’ pattern that could signal a long-term bull market.

3. Optimism for a $100K Bitcoin Price

Currently trading above $64,000, Bitcoin is just 12% shy of its all-time high of $73,750. Options traders are highly optimistic, with forecasts suggesting Bitcoin could hit $100K by December. According to Deribit, significant option trades are betting on this potential rise, including a large trade involving call options.

4. Impact of US Election Dynamics

The recent withdrawal of pro-Bitcoin Robert F. Kennedy Jr. from the presidential race and his endorsement of Donald Trump has shifted political support, influencing Bitcoin’s price positively. The latest Polymarket data shows Trump leading Kamala Harris, which could impact Bitcoin sentiment.

5. Strong Bitcoin ETF Inflows

On Friday, the Spot Bitcoin ETF saw $252 million in net inflows, bringing the weekly total to $506.4 million. This consistent inflow underscores robust confidence from both institutional and retail investors. Notably, BlackRock and Fidelity have reported significant ETF inflows, further supporting Bitcoin’s price stability above $60,000 this week.

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Bitcoin

Bitcoin Holds Critical $58K Support, Prepares for Breakout

by Ouess
written by Ouess

Bitcoin (BTC) continues to trade sideways but remains steady at the crucial $58,000 support level. As the price nears the end of a triangle pattern, a breakout seems imminent, with an upward move being more likely.

$BTC Defends the $58K Level

After a sharp drop to $49,000, Bitcoin quickly rebounded to $62,700 before entering a consolidation phase. Despite moving sideways, BTC has held strong above the significant $58,000 support, showing clear buyer interest at this level.

Triangle or Bull Flag Pattern?

This consolidation has created a triangle pattern. The upper limit is the last local high of $70,000, reached in late July. As Bitcoin approaches the triangle’s apex, a breakout could occur within days. Given the overall upward trend, the breakout will likely be to the upside. If it happens, the near-term targets are $60,000 and $61,000, with the potential to climb toward the channel’s top.

Alternatively, the current pattern might represent a bull flag, which began with the sharp dip when buyers quickly scooped up Bitcoin after the Japanese stock market crash. If this pattern unfolds, a measured move suggests a price target of $73,000.

Widening Channel Indicates Bullish Outlook

Looking at the broader picture, Bitcoin’s price structure shows a widening channel, another bullish sign. This pattern suggests that BTC will likely break out to the upside. However, holding the $58,000 support is crucial. If Bitcoin drops below this level, the next support is at $56,000. A break below this could push Bitcoin back to the channel’s lower boundary around $50,000.

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Bitcoin

Bitcoin Battles $58K Support: Will BTC Hold or Dive?

by Ouess
written by Ouess

Bitcoin (BTC) is clinging to the critical $58,000 support level, despite prevailing negative sentiment in the market. After briefly dipping to $56,200 on Thursday, BTC quickly rebounded, and by Friday, the price had climbed back above the key support. The big question on everyone’s mind now is whether this level will hold.

Bitcoin at a Crucial Juncture

Bitcoin remains precariously close to the $58,000 mark, leaving many investors and traders wondering if BTC will flirt with danger once more. If it does, will it finally take the plunge that could signal the start of an early bear market?

However, both fundamental and technical analyses suggest that such a scenario is highly unlikely.

Fundamental Strengths of Bitcoin

From a fundamental standpoint, Bitcoin is one of the rarest assets in existence. It’s even scarcer than gold. When compared to the U.S. dollar, Bitcoin has appreciated by hundreds of thousands of percent. Meanwhile, governments around the world have barely begun the massive money printing required to manage their enormous debts.

Fiat currency, in essence, is merely paper with value contingent on the solvency of the government that issues it. Even at the fall of the Roman Empire, the coins issued to legionnaires contained some silver. But what intrinsic value remains in today’s fiat currency?

We are living in unprecedented times where true wealth is increasingly defined by hard assets. The facade surrounding fiat currencies is crumbling, revealing their inherent vulnerabilities. A financial reckoning is on the horizon. If your money is in the bank, it could soon be worth significantly less as governments flood the system with newly printed currency, diluting the value of existing money.

Technical Outlook: A Bullish Reversal on the Horizon?

Technically speaking, the situation is more nuanced. Markets fluctuate—they rise and fall. Bitcoin’s price has been forming lower highs and lower lows for some time, which could raise concerns. However, this pattern could also be the setup for a bullish formation known as a bull flag.

The daily chart shows Bitcoin fighting to stay above the $58,000 support. If this level fails, the price could drop further. But an inverse head and shoulders pattern appears to be forming, which could indicate a bullish reversal even if the price dips more.

The Decision Point: Hold or Fold?

The Bitcoin bull market remains intact. The rapid ascent from $25,000 to $73,000 is still being digested by the market. The price may move sideways or dip further, but remember—this is Bitcoin. The choice is yours: sell your BTC for fiat currency, or hold on and be part of the future financial system?

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Bitcoin

Bitcoin Price Breakout: New Trend or Another Fakeout?

by Ouess
written by Ouess

Bitcoin’s price has faced several challenges since early June. Long-term holders have been taking profits, miners have been selling to stay profitable after the halving, and Wall Street hedge funds have been dampening the price with their “carry trade” strategy.

Some on social media are even predicting the end of the bull market, claiming the peak was at $73,800 and Bitcoin has been declining ever since.

Is this the end of the bull market? Probably not. Bitcoin has historically had bull markets lasting around three years. With institutions now involved, it’s unlikely this bull market will be cut short.

Bitcoin Channel Breakout

In the daily short-term time frame, Bitcoin’s price is attempting a breakout from its downward channel. This pattern is bullish, but the top trend line of the channel and resistance at $66,000 are currently containing the price.

Momentum Indicator is Key

Looking at the weekly time frame, the resistance seen in the daily chart is actually support. Stronger support at $64,000 held the price on Tuesday, as shown by the wick down to this level.

A major concern is the stochastic RSI on the weekly chart. This momentum indicator has crossed down, suggesting a possible double dip. Even if this happens, it likely won’t be long before the indicator hits the bottom and starts to rise again, bringing back important momentum.

If Bitcoin breaks out and the price appreciates by the end of the week, the fast (blue) and slow (red) indicator lines could cross over, signaling positive price momentum as early as next week. Additionally, hidden bullish divergence might soon play out, further supporting a potential uptrend.

Conclusion

While Bitcoin’s price faces significant resistance and mixed signals from momentum indicators, the potential for a breakout remains. Investors should watch for further developments, especially regarding support levels and momentum indicators.

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Bitcoin Chart Patterns Signal Potential Breakout

by Ouess
written by Ouess

Bitcoin has been in a bit of a lull since its all-time high back in mid-March, experiencing 15 weeks of sideways and slightly downward price movement. Despite this, there are three chart patterns emerging that suggest Bitcoin could be poised for significant gains.

Bitcoin’s Current Market Status

Currently, Bitcoin appears subdued, leading some to believe that it peaked in March and has been gradually declining. This perspective is gaining traction on social media. However, Bitcoin remains in a bull trend, and historical bull market corrections have been more severe. Bitcoin is only 11% below its all-time high, indicating there’s no immediate cause for concern.

Promising Chart Patterns

While Bitcoin’s price action has been relatively stable, several chart patterns indicate the potential for an exciting upward trend.

Inverse Head and Shoulders

This pattern is the least likely to yield significant gains but is still noteworthy. Bitcoin’s price is near the neckline of the pattern, and a daily close below this level would invalidate it. However, if the pattern holds and Bitcoin rebounds, it could push the price to a new all-time high of over $75,000.

Bull Flag

The bull flag is one of the most bullish patterns, particularly on higher time frames. Measuring from the $38,500 price point in January, this pattern suggests a potential move to just over $94,000 for Bitcoin. This would represent a substantial gain and a new record high.

Cup and Handle

The cup and handle is the most bullish pattern currently forming for Bitcoin. The cup spans from the peak of the previous bull market in 2021, through the bear market of 2022-2023, to the recent all-time high in March. The handle is still developing and might involve further sideways movement. If Bitcoin can break above $71,500, this pattern could drive the price to around $126,000, based on the measured move from the cup’s bottom to the neckline.

Conclusion

While Bitcoin has been experiencing a period of relative calm, these chart patterns suggest that the next phase of price action could be very exciting. Investors should watch closely as Bitcoin approaches critical levels that could signal a breakout to new all-time highs.

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