Bitcoin Price Hits $66,000 Amid Bull Market Hopes

This week, Bitcoin has shown a modest yet promising performance, soaring to $66,000, its highest level since July 31. The rise in Bitcoin’s price coincided with a surge in other risky assets such as altcoins and equities. The Dow Jones and the S&P 500 index have reached record highs, while the Nasdaq 100 is just a few points below its all-time high.

Bitcoin’s Potential for Further Growth

According to crypto analyst Miles Deutscher, Bitcoin may continue its upward trajectory, potentially reaching $81,000 in the near term. Deutscher noted that the S&P 500 index, which tracks the largest American companies, is up by 9% above its highest level this year. He suggested that if Bitcoin catches up with equities, it could hit $81,000.

“Bitcoin could break ATHs way sooner than you think. The S&P 500 is now sitting 9% above its yearly high. BTC is still lagging, 11% below its yearly high ($74k). If BTC catches up to stocks (9% above yearly high) – this would imply a BTC price of $81,000.”

Institutional Support and Predictions

Other analysts are also bullish on Bitcoin. BlackRock, the world’s largest asset manager, referred to Bitcoin as a “unique diversifier” in a recent report. The New York-based firm argued that Bitcoin is uncorrelated with equities, especially during periods of elevated risks. BlackRock has been allocating Bitcoin in its balance sheet, a move that might inspire other firms to start buying.

MicroStrategy continues to accumulate Bitcoin, with its founder, Michael Saylor, predicting that Bitcoin will rise to over $13 million by 2045. The company currently holds over 252,000 coins.

Michael van de Poppe, founder of MC Consultunacy and a Bitcoin enthusiast, also noted that Bitcoin could jump to between $90,000 and $100,000 by the end of the year. He cited increasing global liquidity, which is expected to rise as central banks slash interest rates.

“Global liquidity is significantly increasing and altcoins have barely started. Before the end of the year, we’re likely seeing Bitcoin trading between $90,000-100,000.”

Seasonality and Market Sentiment

Seasonality is favoring Bitcoin in the near term. Data from CoinGlass shows that the average return in the fourth quarter is 88%, higher than the third quarter’s 6.3% and the second quarter’s 27%. October and November are usually the best months for Bitcoin.

Traders on Polymarket are betting that Bitcoin will reach a new all-time high in 2024, with 63% odds in favor.

Bitcoin Technical Analysis

The daily chart for Bitcoin shows solid technical indicators. The coin has formed an inverse head and shoulders pattern, a popular bullish sign, and a falling broadening wedge. Bitcoin has avoided forming a death cross pattern and has moved above the 50-day and 200-day moving averages. To continue the bullish trend, Bitcoin will need to move above the upper side of the wedge and clear the year-to-date high of $73,777.

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