Bitcoin broke above a descending channel, indicating a potential shift to a bullish phase.
The global crypto market cap rose 3% after the Fed announced a 50 basis point rate cut.
Analyst predict BTC’s final upward leg could reach a new high within the next few months.
The cryptocurrency market experienced a notable surge following the newest FOMC report. The FOMC announced a 50 basis point interest rate cut, resulting in price movements among major digital assets. The price of Bitcoin (BTC) extended to trade above $62,000, while Ethereum (ETH), Solana (SOL), and XRP surged between 1% and 4%. This rally increased the global crypto market capitalization by 3% to hit the $2.14 trillion mark at the time of writing.
Specifically, Bitcoin’s trading price during this writing was $62,027.69, with a 24-hour trading volume of $46.33 billion. The crypto has seen a 2.74% price increase over the past 24 hours and a 6.56% rise in the past week. The rate cut has enabled analysts to approach the market with realistic probabilities, particularly over its effect in the following months. This shows there is an upward potential for Bitcoin, and technical indicators have supported this.
Key Support and Resistance
For instance, a chart analysis by trader Bluntz shows that Bitcoin’s price has been moving in a corrective phase. This pattern of equilibrium prices moving up and down in the channel defined by two downward-sloping lines has been maintained for several months. Many times, the price has touched the lower end of the channel and hence.
dont fade this next $BTC ath rip, this will be the last macro leg higher, you got about 3-4 more months to make as much money as possible. https://t.co/Hqpfa28DvM pic.twitter.com/kZmO6D5we5
— Bluntz (@Bluntz_Capital) September 18, 2024
Analysts are ‘scratching their heads’ as they have observed that the current pattern might be from the ‘Elliott Wave structure.’ Analyzing Bitcoin price movements, one can identify an impulsive sequence that indicates a shift in the trend towards the bullish one. This sequence is described by 1-5 and labels the market’s expected pattern regarding the price.
New All-Time Highs for Bitcoin
The extrapolated wave count indicates the possibility of Bitcoin preparing for a dramatic bullish movement. As per the analysis, it ended at the higher channel boundary at Wave 1, then correction at Wave 2. The third wave is usually the most significant of them based on the Elliott Wave theory.
Following this breakout, Bitcoin is anticipated to enter a minor corrective phase, labeled as Wave 4, within a smaller descending channel. This setup could pave the way for the final Wave 5. Here, Bitcoin’s price may target new highs between $85,000 and $100,000. Analyst suggest that this could represent the “last macro leg higher” for Bitcoin, with expectations for these targets to be reached within the next three to four months
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