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Bitcoin Rises 2.5% to Near $61K, Following Stocks

Bitcoin gains 2.5% to reach $61,424, driven by risk-on macro sentiment, though it remains stuck in a stubborn price range.

• Main Points:

  • Bitcoin Price Surge: BTC rises 2.5%, hitting $61,424, buoyed by risk-on macro sentiment.

  • Macro Impact: Stock market re-leveraging and increased risk appetite benefit Bitcoin.

  • Jackson Hole Event: Upcoming Federal Reserve signals at Jackson Hole could influence BTC.

  • Resistance Challenges: Bitcoin struggles to break the $70,000 resistance within a downward-sloping range.

  • Market Caution: Analysts see Bitcoin’s price action as potentially range-bound in the short term.

• Detailed Insights:

  • Bitcoin Price Surge: Bitcoin saw a 2.5% increase on August 20, reaching $61,424, marking a sharp contrast to the week’s earlier price action. The move raised hopes for a potential BTC price recovery, but Bitcoin remains below key resistance levels.

  • Macro Impact: The broader macroeconomic environment, including a re-leveraging among stock traders and corporate share buybacks reaching $1.15 trillion, has contributed to a rally in equities, which appears to be spilling over into the crypto market. Bitcoin could benefit further from this risk-on sentiment, as traders look to capitalize on the positive momentum.

  • Jackson Hole Event: The upcoming Federal Reserve symposium at Jackson Hole could provide further cues on U.S. financial policy. Analysts are watching closely, as any signals of policy easing could push Bitcoin higher.

  • Resistance Challenges: Despite the recent gains, Bitcoin continues to face resistance near the $70,000 mark. The price remains within a downward-sloping range, making it difficult to achieve a decisive breakout. Traders are cautious, with some seeing potential for a test of liquidity above early August highs in the low to mid $60,000s.

  • Market Caution: While the current price action is encouraging, analysts like Rekt Capital and Credible Crypto suggest that Bitcoin may continue to trade sideways in the near term. They highlight the importance of holding key support levels, particularly around $56,000, as Bitcoin attempts to confirm a more bullish trend.

Related: Michael Saylor Makes Bold Bitcoin Statement Amid Price Pause

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3 Reasons Bitcoin Won’t Be 'Boring' in September

Despite closing below the $60K mark, Bitcoin’s bullish indicators, including long-term holder confidence, miner accumulation, and a stablecoin supply surge, suggest that September could be anything but boring for BTC.

• Main Points:

  • Long-Term Holders (LTHs) Bullish: LTHs continue to accumulate, with a realized cap hitting $3 billion.

    Miner Accumulation: Selling pressure from miners has flatlined, hinting at potential stability.

    Stablecoin Supply Surge: Increased stablecoin liquidity indicates potential for a BTC rally.

• Detailed Insights:

  • Long-Term Holders (LTHs) Bullish: Bitcoin closed below the 200-day EMA for the third time this year but quickly rebounded above $60,000. LTHs remain unfazed, continuing to accumulate with a $3 billion increase in the realized cap, suggesting long-term confidence in BTC’s potential for a breakout.

  • Miner Accumulation: After a period of heavy selling, Bitcoin miners are showing signs of accumulation as their selling pressure decreased significantly in August. This trend could indicate a stabilization in BTC’s price, providing a foundation for a potential rally in September.

  • Stablecoin Supply Surge: The stablecoin supply ratio (SSR) has dropped to February 2024 levels, signaling an increase in available liquidity for purchasing Bitcoin. With the total stablecoin market cap reaching a new all-time high of $165 billion, this surge in liquidity could trigger a significant upward movement in BTC’s price.

  • BTC’s Next Move:

    Bitcoin is attempting to break out of a descending broadening channel pattern, facing strong resistance at $61,700, where the 50-day and 100-day EMAs converge. If Bitcoin breaches this level and surpasses $62,737, it could trigger a “Change of Character” (ChoCH), signaling a bullish trend reversal heading into September.

Related: 50M U.S. Crypto Owners Urged to Push Kamala Harris to Fire SEC Chair

Is Bitcoin About to Surprise Us?

Bitcoin has held above $58,000 amid poor market sentiment, but macro indicators suggest a major move could be on the horizon, possibly taking BTC back to its all-time high.

• Main Points:

  • Consolidation Phase: After a 196% gain, Bitcoin needed time to consolidate.

  • Price Wake-Up: BTC surged, hitting $61,000 before pulling back.

  • Weekly Momentum: Stochastic RSI signals potential upside momentum.

  • 2-Week Indicator: A similar RSI signal on a longer time frame suggests a strong rally.

  • $100,000 Potential: If bullish signals align, BTC could not only hit a new ATH but also $100,000.

• Detailed Insights:

  • Consolidation Phase: Bitcoin’s massive 196% gain from September 2023 to its peak at $73,800 required a significant consolidation period. Now, 24 weeks later, the market seems poised for the next leg of the bull run, with indicators suggesting the end of the boring sideways movement.

  • Price Wake-Up: On Tuesday, BTC broke out of its channel, briefly touching $61,000 before facing resistance. Whether it retests the $60,000 level or continues upward remains to be seen, but the sudden price movement has caught the market’s attention.

  • Weekly Momentum: The stochastic RSI on the weekly chart shows that the fast indicator line (blue) turns upward and could soon cross the slow indicator line (orange). This crossover typically signals strong upward momentum, potentially driving BTC back to its all-time high.

  • 2-Week Indicator: The 2-week chart also shows a similar stochastic RSI setup, with the lines poised for a crossover. If this occurs and the indicator breaks above the 20 level, the momentum could push BTC through key resistance levels at $61,000, $63,000, and ultimately $69,000, where previous highs were established.

  • $100,000 Potential: While it may be premature to predict, the alignment of these technical indicators suggests that if BTC breaks past these resistance levels, a new all-time high—and potentially $100,000—could be within reach.

Related: Bitcoin Set for Breakout as Short Liquidations Hit $9B

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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results