Bitcoin Rally: Is a Major Breakout on the Horizon?

23 September 2024 BACK TO NEWS

Bitcoin (BTC) experienced a significant surge of over 8% last week, closing above the $63,000 mark, primarily driven by the U.S. Federal Reserve's recent decision to cut interest rates. Following a bounce off the crucial 50-week Moving Average (MA), BTC is now testing the key resistance level just above $64,000. This raises questions: could this be the precursor to a larger breakout?

Over the past two weeks, Bitcoin's rally has alleviated concerns about potential declines in the crypto market. The Bitcoin Fear and Greed Index has climbed above 50%, indicating a shift toward more positive sentiment among investors. This growing optimism suggests that a potential bull run may be on the horizon.

As geopolitical tensions escalate—particularly between NATO and the BRICS nations—there's been a notable rise in demand for both Bitcoin and gold. Gold recently hit an all-time high of $2,630, which could signal a similar upward trajectory for Bitcoin.

On-chain data reveals that Bitcoin "whales," or large holders, are significantly increasing their positions. The supply of Bitcoin on centralized exchanges (CEXs) has plummeted to multi-year lows, decreasing from 2.7 million units in March to approximately 2.3 million currently. This trend supports a bullish outlook for Bitcoin’s price in the coming months.

In the last 30 days, over 91,100 Bitcoins have been withdrawn from major exchanges like Binance and Coinbase Pro. Additionally, U.S. Bitcoin ETF issuers have accumulated nearly $800 million in BTC over the past two weeks, indicating heightened institutional interest in the cryptocurrency.

After a lackluster performance in Q3, Bitcoin is poised for a robust rebound in Q4, with many experts predicting it could reach around $100,000 by year-end. While there remains a possibility of a retest of the $55,000 support level, several indicators suggest that bullish momentum is building.

The weekly Relative Strength Index (RSI) has rebounded above the 50% mark and broken out of a declining logarithmic trend. A consistent close above the 200-day Moving Average could propel Bitcoin towards the next significant milestone of approximately $69,000.

As speculation continues, the crypto community is left to ponder: will Bitcoin hit the coveted $100,000 mark by the end of the year? The coming weeks will be crucial as market dynamics evolve and investor sentiment continues to shift.