Bitcoin is showing renewed momentum as traders anticipate a return to the $62,400 level. Daan Crypto, in a recent X post, highlighted the potential for BTC to rebound to this “critical” level once the futures market reopens. This price point has acted as both a support and resistance level in recent weeks.
Ash Crypto noted that Bitcoin is currently in a post-halving consolidation phase, similar to previous cycles. Historically, Bitcoin has consolidated for several months after each halving, and a significant price surge typically occurs around six months post-halving. With the next halving occurring in 2024, the market may witness a sharp upward move in the coming two to three weeks, as the consolidation period nears its end.
Global economic factors are also aligning favorably for Bitcoin. The U.S. Federal Reserve’s interest rate cuts, China’s economic stimulus, and the Bank of Japan’s pause on rate hikes are creating a more conducive environment for cryptocurrencies. Additionally, the political landscape, with former U.S. President Donald Trump gaining traction, could influence market sentiment in the crypto space.
Institutional interest in Bitcoin has been resurfacing, as evidenced by the renewed accumulation of Bitcoin exchange-traded funds (ETFs). The decline in BTC flows to exchanges suggests that selling pressure from investors has eased. Furthermore, Russia’s plan to implement cross-border payments using cryptocurrency by November is a bullish factor.
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However, the global M2 money supply has reached a new all-time high of $107 trillion, creating potential liquidity for the crypto market. While bullish indicators are emerging, their impact on the market has yet to be fully realized. Analysts believe that once these factors are priced in, Bitcoin could potentially reach $100,000, surpassing its previous all-time high.
The current consolidation phase offers investors an opportunity to position themselves ahead of a potential breakout. As of press time, BTC is trading at $63,080.48, with a slight decline of 0.36% over the past day. The market is closely watching the $62,400 level, as a breakout could significantly impact Bitcoin’s price trajectory for the remainder of the year.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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