The price of Bitcoin and gold could be on track for a significant breakout as macroeconomic conditions improve.

Global Macro Investor founder and CEO Raoul Pal wrote on X on July 29 that the start of the “macro summer” could lead to a Bitcoin price breakout in the near term:

“The macro summer is starting to get underway and will last at least the rest of 2024 and into 2025...Bitcoin is poised to break out of its giant handle into the Banana Zone soon.”

Weekly Bitcoin Cup-Handle Pattern | Source: Raoul Pal

“Banana Zone” is a term coined by Pal to describe a period of significantly increased price volatility. In this case, it suggests that Bitcoin price could break out to a new all-time high (ATH).

Bitcoin needs to close above $70,000 to confirm a breakout

According to Pal, Bitcoin will confirm a move towards a new record high when it breaks out of the current cup-with-handle pattern. This technical chart pattern is used to spot a continuation of an upward price trend.

According to trader Moataz Elsayed, also known as “Eljaboom”, this confirmation will come after the Bitcoin price crosses the $70,000 mark. Trader wrote in a post on X dated July 28:

“Huge cup with handle forming on Bitcoin chart. Weekly close above $70,000 and it's game over for the bears!”

BTC chart and cup with handle pattern | Source: Eljaboom

Contributing to the bullish sentiment, Bitcoin's OI (open interest)* reached a new ATH on July 29, showing that interest and liquidity in the world's first cryptocurrency could lead to breakout. breakout.

Bitcoin price catalysts: Nasdaq correction, US election and weakening US dollar

3 notable catalysts support Bitcoin's impending price breakout, and the first is the Nasdaq correction.

According to Pal, Nasdaq (NDX) is on the verge of a “healthy correction.”

One-year NDX chart | Source: Raoul Pal

The second catalyst could be the upcoming US election, as election years have historically been bullish for the stock market and Bitcoin price.

S&P 500 in presidential election years | Source: Raoul Pal

According to Pal, the possibility of a falling US dollar could ultimately fuel Bitcoin's rally to a new ATH:

“The last thing that could ease the financial situation further would be a weaker dollar, which I think is possible.”

One-year DXY chart | Source: Raoul Pal

During periods of fiat devaluation, investors often turn to safe assets such as Bitcoin and gold to protect their purchasing power.

*OI (open interest) is a measure of the total value of all outstanding or “uncleared” futures contracts on exchanges, and is also an indicator of market price increases as well as like trader sentiment surrounding a particular asset class.

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