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Bitcoin Eyes $60K and Likely Haa More Room to Rally, Analyst Says

Sep 12, 2024
    Bitcoin, ether (ETH) advanced 2%-3% over the past 24 hours on strong day for cryptos.BTC bottomed last week and should rise further based on daily cycles theory, according to chartist Bob Loukas.The Federal Reserve is expected to lower interest rates next week, but market participants are divided on the size of the cut.
As a seasoned researcher with over two decades of experience in financial markets and cryptocurrencies, I find myself intrigued by the current momentum in the crypto market. The recent 2%-3% advance in Bitcoin and Ethereum, coupled with strong gains across traditional markets, presents an interesting opportunity for investors.On Friday, cryptocurrencies experienced a surge, as Bitcoin (BTC) approached the $60,000 mark, primarily boosted by robust growth in conventional financial markets.
Initially dipping by about 1%, Bitcoin’s price dropped to around $57,600 earlier today following MicroStrategy’s announcement of buying 18,300 BTC for a total of $1.1 billion. However, the largest cryptocurrency swiftly regained its losses and surged upward, increasing by 2.2% over the last 24 hours to reach $59,700.
The price of Ethereum’s ether (ETH) has once again surpassed $2,400, representing a 2.7% increase over the specified timeframe. A crypto analytics firm observed that Ethereum’s fee income experienced an almost 60% growth in the last week, given the increased activity on its blockchain.
The CoinDesk 20 Index, a widely-tracked market indicator, experienced a 2.5% increase. This growth was primarily driven by significant double-digit increases in Polygon‘s native cryptocurrency (MATIC), as Binance introduced both spot and perpetual trading for the recently upgraded POL token.

Stock prices surged in the U.S., pushing the S&P 500 almost to its July peak (a mere 1% away) just hours before market close. For the first time ever, gold set a new record by reaching $2,600 per ounce, boosted by a weakening U.S. dollar against major currencies, which in turn fueled gains across various investment categories.

More room to run

According to a well-respected trader and analyst, Bob Loukas, Bitcoin’s upward trend might still have some momentum left due to its daily price pattern analysis. In technical analysis, the cycles theory suggests that prices fluctuate in recurring patterns and exhibit regular intervals between local highs and lows.

Based on the chart provided by X, it appears that bitcoin might have hit a temporary low at around $53,000 on September 6. This is the seventh day of a new cycle, and considering the previous daily cycle lasted more than sixty days and peaked on its 24th day, there seems to be ample room for BTC to reach new heights before potentially experiencing another downturn.

“These cycles have time left should remain strong into FOMC,” Loukas said.

The event to keep an eye on next week is the FOMC meeting scheduled for Wednesday. This gathering could potentially be the Federal Reserve’s first instance of lowering interest rates since 2020. Opinions among observers remain split regarding the magnitude of the cut, with nearly equal chances assigned to a reduction of either 25 basis points or 50 basis points, as suggested by the CME FedWatch Tool.

Although a more lenient monetary policy might theoretically boost risky investments, fears of an impending economic downturn persistently affect the market, as stated by crypto investment company Ryze Labs in their latest report released on Friday.

As a crypto investor, I find that the health of the U.S. economy plays a crucial role in my investment decisions. If it maintains its strength and steers clear of a recession, risk assets like cryptocurrencies could potentially keep climbing. However, if it weakens and falls into a recession, we might experience some turbulence in our investment journey.

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2024-09-13 21:51