The price of Bitcoin has seen moderate gains this week, climbing to $66,000, marking its highest value since July 31.
Bitcoin Enters Bull Market
The resurgence of Bitcoin (BTC) has coincided with a rally in high-risk assets, including altcoins and stocks. The Dow Jones and S&P 500 index have reached all-time highs, while the Nasdaq 100 is just shy of its record peak.
In a post on X.com, crypto analyst Miles Deutscher projected that Bitcoin could keep climbing in the short term, potentially hitting $81,000.
He noted that the S&P 500 index, which tracks the largest companies in the U.S., has risen 9% above its yearly peak. Consequently, he informed his 541,000 followers that Bitcoin could reach $81,000 if it aligns with stock market movements, as it has previously.
Other experts also retain a positive outlook for Bitcoin. In a recent analysis, teams at BlackRock, the world’s largest asset manager, referred to Bitcoin as a “unique diversifier” in a report dated September 17.
The New York-based firm argued that the leading cryptocurrency stands out as an asset that remains uncorrelated with stocks, particularly during high-risk periods.
BlackRock has continued to incorporate Bitcoin into its portfolio, a strategy that could motivate other companies to follow suit.
Meanwhile, MicroStrategy has been consistently adding Bitcoin to its reserves. The company’s founder, Michael Saylor, anticipates that Bitcoin will surpass $13 million by 2045. The firm currently holds over 252,000 coins.
Michael van de Poppe, founder of MC Consultunacy and an outspoken Bitcoin advocate, also projected that the coin will soar to anywhere between $90,000 and $100,000 by year-end, citing the increase in global liquidity driven by central banks reducing interest rates.
Bitcoin’s seasonality also seems favorable in the short term. Data from CoinGlass indicates that the average return in the fourth quarter reaches 88%, compared to 6.3% in the third quarter and 27% in the second quarter.
Historically, October and November tend to be the most favorable months for Bitcoin.
Traders on Polymarket are forecasting a new all-time high for Bitcoin in 2024, with 63% odds.
Bitcoin Technical Analysis
Analysis of the daily chart reveals that Bitcoin has strong technical indicators. It has established an inverse head and shoulders pattern, which is a commonly recognized bullish sign. Additionally, a falling broadening wedge is forming.
Bitcoin has successfully avoided creating a death cross pattern and instead is trading above both the 50-day and 200-day moving averages. To maintain the bullish momentum, the coin must break above the upper boundary of the wedge and surpass the year-to-date high of $73,777.
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