Bitcoin (BTC) shaping up for big price move

by

As a seasoned analyst with over two decades of experience under my belt, I have seen numerous market cycles and trends come and go. However, none have been as intriguing and potentially game-changing as the rise of Bitcoin (BTC).

As a researcher examining Bitcoin‘s (BTC) price movements, I’ve noticed that it’s consistently hovered near the upper boundary of a ‘bull flag’ formation multiple times. Yet, each attempt to break through has been met with resistance, causing the price to retreat. The question now is: Could this next attempt be successful and potentially mark a new upward trend?

Bitcoin biggest benefactor from global liquidity

As a researcher delving into the realm of digital currencies, I’ve come across an intriguing finding: According to the insights of renowned analyst Lyn Alden, within a 12-month span, Bitcoin demonstrates the strongest correlation with global liquidity compared to other assets. With global liquidity trending upward, as central banks around the world lower interest rates, it’s quite probable that Bitcoin stands to gain significantly from this shift.

As a financial analyst, I too am inclined towards viewing Bitcoin as a promising asset for growth in the upcoming years. I firmly believe that its market value could potentially exceed that of gold in the long run.

First rate cut to be announced later today

It’s clear that these are long-term forecasts, and they might require some time before they become reality. On the other hand, in the present moment, Bitcoin seems to be responding to the impending first interest rate cut by the U.S. Federal Reserve since early 2020.

Over the past period, Bitcoin’s price has shown significant fluctuations, yet these swings have predominantly moved in an upward direction. The crucial horizontal resistance at $58,000 has been surpassed once more and now serves as support. Moreover, broader market signals suggest a persistent continuation of this newly established uptrend.

$BTC battles $61,000 horizontal resistance

Over the immediate period, Bitcoin’s price continues to struggle against the barrier at $61,000. After a brief dip, it dropped beneath the upward trendline, but it quickly bounced back and reclaimed its position.

Should Bitcoin manage to surmount this resistance level and transform it into a support, the subsequent objective lies in exceeding the crucial $65,000 horizontal boundary and establishing a new high. If such an event occurs, the downtrend will have been definitively shattered.

Macro indicators shaping to signal upside momentum

In its struggle against resistance, Bitcoin is attempting to shatter this barrier and climb to the peak of a bullish pattern known as a flag. Two significant market indicators are starting to hint at the powerful momentum that could propel Bitcoin’s price upward and help it achieve this goal. Ultimately, if successful, Bitcoin could break through the top of the flag and aim for $100,000.

On the chart’s lower section, you can see that the Relative Strength Index (RSI) is showing signs of breaking through its downward trendline as it slightly emerges above it.

Concurrently, the Stochastic RSI is indicating that the two lines are poised to rise above the 20 level, suggesting a potential bullish crossover. If these indicators validate this bullish trend at the end of trading on Sunday, it may provide enough momentum for Bitcoin ($BTC) for the following weeks.

Read More

2024-09-18 12:07