As a seasoned researcher with over a decade of experience in financial markets and digital assets, I have witnessed the meteoric rise and fall of various investment trends. However, the journey of Bitcoin has always been unique and intriguing. The current momentum suggests that we might be on the brink of another significant milestone for the world’s largest cryptocurrency.
Right now, the Bitcoin–US Dollar exchange rate is maintaining itself over $63,500. If bulls can successfully raise the price above $65,050, it would mark a crucial higher peak, signaling the end of the current downtrend and potentially starting Bitcoin’s journey towards reclaiming its all-time high. This could be the initial phase of Bitcoin reaching new record heights.
Momentum is pushing Bitcoin higher
The price of Bitcoin could soon break through a key barrier, potentially reaching new heights and moving closer to exceeding its all-time high of $73,800. This milestone lies just above the current level, which represents the top of the bullish flag pattern.
As a crypto investor, I found myself bracing for potential drops in BTC‘s price earlier today within the ascending channel. However, the resilient bulls managed to rally and push the price back within the channel. Now, it seems that Bitcoin is aggressively pushing through the resistance at $63,600, indicating a positive momentum for the digital currency.
Should it be successful, and confirm above, the higher high at $65,050 will be in its sights.
It seems quite possible that the Bitcoin price could rise from here. The short-term upward momentum, as indicated by the Stochastic RSI at the base of the chart, is about to kick in. This trend aligns with the 8-hour Stochastic RSI, while the 12-hour is also getting close to the bottom and preparing to turn up, suggesting more upward momentum.
Stars are aligning again for Bitcoin
The weekly chart shows how everything appears to be moving into place for Bitcoin. The $BTC price is moving solidly towards the top of the bull flag, currently held up by the resistance (blue lines).
At the base of the graph, you’ll find the Relative Strength Index (RSI). If it indicates a possible breakout, this could lead to a change in trend direction, assuming the breakout is successful.
The chart below shows the Weekly Stochastic Relative Strength Index (RSI), which indicates robust upward movement as of now. These indicators will provide confirmation by the end of trading on Sunday.
Bitcoin is the barometer for global liquidity
To summarize, the graph you see originates from Sam Callahan’s piece titled “Bitcoin: a Global Liquidity Barometer,” guided by financial analyst Lyn Alden. This graph illustrates how different assets respond to increasing global liquidity, a trend currently happening. Among these assets, Bitcoin appears to be the most sensitive to changes in global liquidity, making it potentially serve as an indicator for this growing liquidity. As quoted in the article, renowned investor Stan Druckenmiller voices his thoughts on this matter.
“It’s liquidity that moves markets”
If his assessment is correct, with central banks worldwide lowering interest rates and introducing additional liquidity methods, it’s plausible that Bitcoin could emerge as the primary recipient of these benefits, kick-starting a significant price surge as the initial asset to do so.
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2024-09-26 10:34