Bitcoin prices have shown impressive performance this week, surging to $66,000 and reaching their highest level since July 31.
Bitcoin Enters Bull Market
Bitcoin (BTC) is experiencing a recovery that aligns with the rise of riskier assets, including altcoins and equities. Major stock indices like the Dow Jones and the S&P 500 have reached record highs, while the Nasdaq 100 is nearing its all-time peak.
Market analysts predict that Bitcoin’s upward trend may continue, with estimates suggesting it could reach as high as $81,000 in the coming weeks.
Analysts have pointed out that the S&P 500 index, which consists of leading American companies, is currently 9% higher than its peak this year. If Bitcoin mirrors this performance as it historically has, a target of $81,000 for the cryptocurrency could be achieved.
Further positive sentiment surrounds Bitcoin as analysts from a prominent asset management firm have referred to it as a “unique diversifier” in a recent report. They have suggested that Bitcoin behaves independently of equities, especially during high-risk periods.
This recognition has led to a continued investment in Bitcoin, which may inspire additional companies to diversify their holdings. In line with this trend, a major firm has been consistently accumulating Bitcoin, with its founder predicting a staggering value of over $13 million for each coin by 2045.
Another cryptocurrency analyst has projected that Bitcoin could soar to between $90,000 and $100,000 by the year’s end, citing a substantial increase in global liquidity as central banks potentially reduce interest rates.
Moreover, seasonality appears to support Bitcoin’s performance in the near term, with historical data indicating an average return of 88% in the fourth quarter, significantly outperforming other quarters.
Market speculation also suggests a strong possibility of Bitcoin reaching a new all-time high in 2024, with odds estimating a 63% chance of this outcome.
Bitcoin Technical Analysis
The daily chart analysis of Bitcoin reveals solid technical indicators. It has formed an inverse head and shoulders pattern, a common bullish signal, and is exhibiting a falling broadening wedge pattern.
Crucially, Bitcoin has successfully avoided a death cross pattern and has surged above both its 50-day and 200-day moving averages. For this bullish trend to continue, Bitcoin must break above the upper boundary of the wedge and surpass the year-to-date high of $73,777 to further strengthen its recovery momentum.
