Objective Moon, the return. The recent change in monetary policy by the US Federal Reserve (Fed), which lowered its key rates by 50 basis points last week, has enabled a first bullish jolt in “risky” assets such as equities and cryptocurrencies. The latter even recorded a green week in terms of capital inflows into their dedicated investment products. However, to really hope to see the “To The Moon” bloom in the cryptosphere, Bitcoin (BTC) will first have to break through the resistance of $65,200, according to the experts at Bitfinex.
Bitcoin needs to surpass its August 25 high to start bull-running again
Since the Fed central bankers' decision to cut their key interest rates on September 18, 2024, Bitcoin's price has risen from around $59,500 before the announcement to just under $64,000 today. But in the last few days, prices have stagnated again after this small rise (of nearly +8% all the same).
According to the latest weekly bulletin from Bitfinex Alpha analysts, published on September 23, the recent start of the crypto bull market is currently running up against a major obstacle. Indeed, the last BTC price high printed in August - $65,200 on August 25 - has yet to be breached. However, printing a new high is a crucial step if the king of crypto-assets is to ward off its bad spell of bearish stagnation, and get back on an upward trend.
"Bitcoin is now within reach of the August 25 summit of $65,200. The reason why this level is important is that since the historical high of $73,666 reached on March 14, the BTC has still not been able to print a single higher peak before the formation of a new local floor. This corresponds to the technical definition of a downtrend. "
Extract from the 123rd Bitfinex Alpha bulletin
Bitcoin prices against the US dollar: resistance to $65,200 is the last obstacle on the BTC bull run route. - Source: blog.bitfinex.com
A small pause or the direct continuity of the increase for the BTC?
After the last low point at $52,750 of #Bitcoin❗ recorded on September 6, the cryptocurrency leader still achieved +22% increase. This makes Bitfinex analysts think that BTC could have difficulty passing this resistance of $65,200. They are therefore leaning for the moment towards a "new range close to current prices, and consolidation for some time".
But, because there is a but, the experts do not totally exclude a clear upward directionality. The first bullish "counter-argument" would be a continuation of the renewed interest in spot Bitcoin ETFs. If, in addition to this, the US stock market, and in particular the S&P500, continues to progress upwards, Bitcoin could also follow towards new ATHs (historical highs).
"If (...) the price of $BTC ends up exceeding the resistance levels of the end of August (...), this could suggest that our current rise may continue towards new highs for Bitcoin. "
Extract from the 123rd Bitfinex Alpha bulletin
In addition to the arguments presented by Bitfinex, other signs may allow us to consider a bullish restart of Bitcoin. Indeed, gold has already printed new price records against the dollar, very recently. However, the king of cryptos has this strange ability to be both correlated with stock markets as "risky" assets, but also to be correlated with the precious metal as protection against inflation of fiat currencies. And in both cases these assets correlated to Bitcoin already seem to have clearly gone up...
#BinanceTurns7 #IntroToCopytrading #MarketDownturn
