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.

β€œBitcoin 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 β€œunique 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.

β€œGlobal 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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