- Bitcoin maintains sideways trading as analysts see a bullish breakout.
- Bitcoin’s Bullish Momentum Hints at Potential $70k Rally.
- Indicators indicate mixed market sentiment for BTC.
In the past two months, Bitcoin has maintained a sideways trading pattern following a significant rally that drove its price past previous all-time highs. This period of stability raises questions about what might drive Bitcoin into the next phase of growth.
According to Cryptoquant analyst Gustavo Faria, historical surges in Bitcoin’s value have often aligned with notable increases in the global money supply (M2), indicating high liquidity and a strong investor risk appetite. Such conditions typically attract considerable new capital to the market, leading to peaks driven by retail investor FOMO (fear of missing out).
However, this trend has not manifested in the current cycle. Despite a modest increase in global liquidity benefiting Bitcoin over the last year, early this year, the year-over-year change in M2 returned to neutral levels. This change comes in the wake of consistent inflation data in the U.S., prompting a revision in the market’s expectations for interest rate cuts—from five to two—in 2024.
BTC Price Action
As of press time, Bitcoin is experiencing a slight increase in value, trading at $62,772.84, which represents an intraday uptick of 1.76%. This increase positions Bitcoin as the largest cryptocurrency by market capitalization, which has also risen by 1.84% to reach $1,236,553,460,306.
BTC/USD 24-Hour Chart (Source: CoinStats)
Furthermore, Bitcoin’s trade volume has increased by 0.91% during the last 24 hours, reaching $25,845,116,717. This increase in trading activity implies that investors are becoming more interested despite the current market uncertainty.
Notably, Bitcoin’s long-standing image as a safe haven during economic downturns may be adding to the newfound interest. As a result, the present bullish trend in Bitcoin market activity suggests that prices may rise further in the near future.
BTC Signals Bullish Momentum
Amid indications of potential BTC price appreciation in the near future, crypto experts are suggesting the formation of a bullish trend. Market analyst Ali noted in an X (formerly Twitter) post that the TD Sequential indicator has presented a buy signal on the Bitcoin hourly chart. This suggests a potential price rebound, capturing significant attention from traders and investors.
Meanwhile, market analyst Dan Tapiero added his perspective on Bitcoin’s current market conditions. Tapiero tweeted that Bitcoin is “starting to look scary bullish,” noting the potential for a significant price increase.
He highlighted that a break above the $65,000 level could propel Bitcoin’s price to $90,000 and beyond. Tapiero further emphasized the “sideways overlapping flag type consolidation” in Bitcoin’s price action, suggesting that this phase is nearly complete.
He remarked that markets often surprise, and while the specific catalyst for a price surge remains unclear, the overall bullish sentiment persists. His reference to Raoul Pal’s “DFTU” (Don’t Fight The Uptrend) advice underscores the optimistic outlook.
Rally to $70k or Drop to $58k?
Should the bullish sentiment continue, the BTC token could see a price rally, targeting the $70,000 mark and potentially pushing prices even higher. Conversely, if BTC exhibits a bearish sentiment, its prices could fall, seeking support at the $58,000 mark before attempting another bull run.
BTC/USD 1-Day Chart (Source: Tradingview)
Technically, the stochastic RSI is trending vertically, indicating a bullish sentiment for the BTC token. However, its position at 86.90 suggests that the market is overbought. This could potentially lead to a short-term correction before resuming its upward trend.
BTC/USD 1-Day Chart (Source: Tradingview)
In support of the short-term correction, the Bull Bear Power indicator shows red bars developing below the zero line, indicating a looming bearish sentiment in the BTC market.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
