The Bitcoin price has moved sideways this week, maintaining a narrow range between $58,000 and $60,000, even as American stocks continued their rally post-Black Monday crash.

Bitcoin’s Stagnation Amid Positive Headlines

While the Dow Jones index has risen for three consecutive days and is just 2.5% below its all-time high, the Nasdaq 100 and S&P 500 indices have also seen recovery. Meanwhile, the US dollar index has retreated.

Despite this, Bitcoin has remained stagnant, even as large American companies disclosed their Bitcoin ETF investments in their filings. Goldman Sachs revealed it had invested $418 million in Bitcoin ETFs. Other companies like Charles Schwab, Nomura, Citigroup, and Barclays have also invested in these funds.

Guess what these entities all have in common? They all own Bitcoin proxies of Q2 2024.

Regulatory Clarity and Industry Support

The crypto industry is gaining some regulatory clarity. On August 14, Charles Schumer, the Senate Majority Leader, stated his commitment to passing a crypto-related bill by the end of the year. This statement was made in a forum where Democrats expressed their support for the industry.

However, it remains unclear whether the divided Congress will pass anything before the November election. Schumer would need 60 votes for the crypto bill to pass, which has been challenging in recent years.

Bitcoin Accumulation and Federal Reserve Actions

Additionally, Marathon Digital, one of the top Bitcoin mining companies, has continued to accumulate Bitcoin holdings. It bought coins worth over $250 million this week, bringing its total holdings to 25,000.

Importantly, there are signs that the Federal Reserve will start cutting interest rates now that the unemployment rate has risen to 4.3% and inflation is falling.

Potential Bitcoin Price Comeback

In a social media post, Miles Deutscher, a popular crypto analyst, noted that Bitcoin was entering the apathy/time capitulation phase. He observed that the number of crypto-related views on YouTube had dropped by 30% in the past two weeks and that trading volume had fallen by 21%.

Data shows that DEX volume in chains like Ethereum, Solana, and Arbitrum has fallen by over 33% in the last seven days. Deutscher believes that this could be the best time to accumulate.

This feels eerily similar to August-October last year. Retail interest is evaporating fast, apathy amongst existing market participants, and lack of clear narratives.

Technically, Bitcoin is hovering at the 200-day Exponential Moving Average while the accumulation/distribution indicator is in an uptrend, signaling ongoing accumulation.

Most importantly, Bitcoin has formed a bullish flag chart pattern, characterized by a vertical line and a rectangle pattern. Therefore, there is a likelihood that the coin will bounce back if bulls push it above the resistance point at $62,513.

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