Bitcoin made a strong push towards $61,000 on Aug. 20, bringing renewed optimism for a potential BTC price resurgence. The move, which saw Bitcoin gain 2.5% on the day, comes as broader macroeconomic factors appear to be setting the stage for a more bullish environment.
Macro Sentiment Fuels Bitcoin’s Momentum
Data from Cointelegraph Markets Pro and TradingView highlighted Bitcoin’s local highs of $61,424 on Bitstamp, contrasting sharply with its weekly open. Analysts are optimistic that Bitcoin could benefit from a more risk-on macro sentiment, which is currently driving equities higher.
Trading firm QCP Capital, in its latest market bulletin, pointed to a surge in corporate share buybacks and increasing demand from Goldman Sachs’ trading unit as key factors behind the equities rally. This “re-leveraging” among stock traders could extend to crypto, providing Bitcoin with a much-needed push.
“Risk-on sentiment could extend to crypto and gold, pushing BTC higher given the strong demand for topside calls,” QCP Capital noted.
Upcoming cues on U.S. financial policy, particularly from the Federal Reserve’s annual Jackson Hole symposium later this week, could further influence Bitcoin’s price action. Historically, the S&P 500 has seen rallies following Jackson Hole events, which might also bode well for Bitcoin.
Bitcoin’s Price Range Remains a Key Focus
Despite the recent gains, Bitcoin remains within a stubborn downward-sloping range, with key resistance still near $70,000. The question now is whether Bitcoin can hold the $60,000 level and push towards liquidity above the early August highs in the low to mid-$60,000s.
Mark Cullen, a popular trader, noted that Bitcoin squeezed through the $59.5K level overnight, taking liquidity above the weekend highs and hitting the upper trendline. “Can $BTC hold 60K now and make a run for the liquidity above the early Aug highs in the low to mid 60Ks?” he asked.
Trader and analyst Rekt Capital observed that Bitcoin's price movements have been echoing patterns seen since March's record high. "History has repeated itself," he said, adding that a weekly candle close above the current range could be a bullish signal.
However, some traders, including Credible Crypto, anticipate that Bitcoin's sideways price action may continue in the short term. He suggested that while the support at $56,000 is likely to hold, the current range may take longer to resolve.
As Bitcoin approaches $61,000, the market is watching closely to see if it can break through key resistance levels. With macroeconomic factors aligning in favour of a risk-on environment, the stage could be set for Bitcoin to make a significant move. However, the ongoing range-bound price action suggests that caution is still warranted as the market waits for clearer signals.
