- Bitcoin is expected to revisit the $62.4K level soon, a key support and resistance point.
- Ash Crypto predicts Bitcoin’s consolidation phase could end with a sharp upward move in weeks.
- Global economic factors and institutional accumulation suggest BTC may hit $100K soon.
Bitcoin is sparking renewed momentum, and traders predict that the price would return to the $62.4K level shortly. In an X post on Sunday, Daan Crypto highlighted that BTC could trade back up to this ‘critical’ level once the futures market reopens. This has become a support and resistance for recent weeks at the $62.4K mark.
Short term movements indicate stability but a breakout could be imminent. Bitcoin is in a post halving consolidation phase like previous cycles, said Ash Crypto. BTC has historically consolidated and price cannot surge significantly until 6 months after each halving has taken place. The next two to three weeks may, however, usher in a sharp upward move with 2024 set to mark 161 days of consolidation.
Bitcoin’s Global Outlook
Meanwhile, a number of global economic factors are also aligned to help Bitcoin’s outlook. The U.S. Federal Reserve is cutting interest rates while China’s government has announced an $280 billion economic stimulus. Furthermore, the Bank of Japan has also surprised by pausing is rate hikes, creating a more favourable environment for cryptocurrencies. Also, former U.S. President Donald Trump is getting political traction and may change the market sentiment in the crypto space.
Bitcoin exchange traded funds (ETFs) are back accumulating again in the cryptocurrency market, a sign institutional interest in the asset class has resumed. The selling pressure from investors has been nurtured when BTC flows to exchanges are at low levels. Russia plans to start cross border payments using cryptocurrency by November which is a bullish factor. However, the amount of M2 money supply in the world has become a new all time high of $107 trillion creating more liquidity for the crypto market.
Bitcoin’s Breakout Potential
Such bullish indicators though have yet to permeate to the market. According to analysts, Bitcoin once these factors are priced in may be able to reach $100,000, breaking past its all time high. With the current consolidation phase, this is really an opportunity for investors and for them to be in front of that potential breakout. As of press time, BTC is trading at $62,016, showing a 0.36% decline over the past day.
Source: TradingView
Global economic trends and decreasing selling pressure will soon push Bitcoin to a major move. Bitcoin’s next breakout will determine the market direction for the rest of the year, as traders and investors are watching the $62.4K level very closely.
