Highlights:
- Bitcoin is struggling around the $64,304 resistance
- A rally through the $64,304 resistance could see Bitcoin test $70k short-term
- Rate cuts and rising institutional adoption likely to trigger rally through $64,304
Bitcoin has started the week on a strong note, continuing the impressive upward trend it has experienced recently. In the last 24 hours, Bitcoin gained 1.43%, trading at $63,630.34 at the time of writing. This sustained upward movement comes amid favorable macroeconomic factors and growing institutional interest.
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Chart Analysis – Bitcoin Trading At Critical Resistance
From a technical perspective, Bitcoin shows signs of a potential breakout, though some caution is warranted. Currently, Bitcoin is trading near the critical resistance level of $64,304. Volumes are thinning at this resistance, an indicator that traders are cautious, waiting to see if bulls can push through the resistance.
If Bitcoin price fails to break through this resistance, a minor correction could be on the horizon, with Bitcoin potentially retesting support at $61,420. Such a correction would not be unusual in a broader bullish trend, as minor pullbacks often occur before a continuation of upward movement. A healthy retest of support could serve to consolidate gains, creating a stronger base for future rallies.
However, there is a higher likelihood that Bitcoin could surprise the market and rally through the $64,304 resistance. Several factors support this optimistic scenario.
Macro Factors Supporting Bitcoin Price
One of the primary drivers behind Bitcoin’s bullish momentum is the recent 50 basis point cut in US interest rates. These cuts have sparked excitement across financial markets, particularly in high-risk assets like cryptocurrencies. As liquidity rises in the markets, Bitcoin could be headed higher.
Institutional Support Growing Stronger
Bitcoin’s appeal to institutional investors has grown significantly in recent months, further boosting its price. MicroStrategy raised $1 billion to buy more Bitcoin. MicroStrategy has become one of the largest corporate holders of Bitcoin, and its continued investments demonstrate institutional confidence in the cryptocurrency’s long-term potential.
JUST IN: MicroStrategy raises $1 billion to buy more #Bitcoin and redeem outstanding Notes. pic.twitter.com/MvN1YCu5uA
— Bitcoin Magazine (@BitcoinMagazine) September 20, 2024
Moreover, Larry Fink, CEO of BlackRock, the world’s largest asset manager, has been vocal in his support for Bitcoin. Fink recently described Bitcoin as an uncorrelated asset, making it a potential hedge against traditional financial market fluctuations. As more institutions recognize Bitcoin’s potential as a store of value, the price could keep surging higher.
Upcoming US Elections
Bitcoin has historically experienced significant price increases following U.S. elections. With elections on the horizon and the recent rate cuts, a rally to $70k is a realistic possibility. Expectations of a win for Donald Trump, who is openly pro-crypto could lead to a parabolic price rally.
Recap – Bitcoin Poised for a Rally to $70k
Bitcoin’s impressive performance this week is a continuation of the bullish trend that has characterized its price action recently. With strong institutional support, favorable macroeconomic conditions, and increasing liquidity in the market, Bitcoin is well-positioned to continue its upward trajectory. While a minor correction could occur if Bitcoin price fails to break through the $64,304 resistance, the odds favor a rally toward $70,000 in the short term.
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