Bitcoin has shown promising performance this week, climbing to $66,000—its highest value since July 31. This recovery aligns with a broader upswing in risk assets, including altcoins and equities. Both the Dow Jones Industrial Average and the S&P 500 have reached record highs, while the Nasdaq 100 is just shy of its all-time peak.
Bullish Outlook for Bitcoin
Crypto analyst Miles Deutscher shared insights on X.com, predicting that Bitcoin could continue its upward trajectory, possibly hitting $81,000 in the near future. He highlighted that the S&P 500 index, which measures the performance of the largest American companies, has surged 9% above its yearly peak. Deutscher suggested that if Bitcoin aligns with this trend, it could experience a similar increase, given its historical correlation with equities.
In addition to Deutscher’s predictions, other analysts share a similarly optimistic outlook. A recent report from BlackRock, the world’s largest asset management firm, labeled Bitcoin as a “unique diversifier.” The New York-based company emphasized that Bitcoin stands apart from traditional equities, particularly during times of heightened market risk. BlackRock has been steadily adding Bitcoin to its balance sheet, potentially encouraging other firms to follow suit.
Continued Accumulation by Major Players
MicroStrategy, under the leadership of founder Michael Saylor, has also been actively accumulating Bitcoin. Saylor forecasts that the cryptocurrency could rise to over $13 million by 2045. The company currently holds more than 252,000 Bitcoin, underscoring its commitment to the asset.
Another prominent figure, Michaël van de Poppe, founder of MC Consultancy and a self-proclaimed Bitcoin enthusiast, predicted a price range between $90,000 and $100,000 for Bitcoin by the year’s end. He attributed this optimistic forecast to increasing global liquidity, which is expected to rise further as central banks reduce interest rates.
Seasonal Trends Favoring Bitcoin
Seasonal patterns also seem to support a bullish outlook for Bitcoin. Data from CoinGlass indicates that the average return for Bitcoin in the fourth quarter is typically 88%, significantly higher than the returns recorded in the previous quarters. Historically, October and November have proven to be particularly strong months for Bitcoin’s performance.
Market participants are optimistic about Bitcoin reaching new all-time highs in 2024, with Polymarket traders estimating a 63% probability for this outcome.
Technical Indicators
Analyzing Bitcoin’s technical aspects, the daily chart reveals encouraging signs. An inverse head and shoulders pattern—a widely recognized bullish indicator—has formed, alongside a falling broadening wedge. Notably, Bitcoin has successfully avoided a death cross pattern, rising above both the 50-day and 200-day moving averages. For the bullish momentum to persist, Bitcoin must break above the upper boundary of the wedge and surpass the year-to-date high of $73,777, which could further accelerate its recovery.
As Bitcoin gains traction, the cryptocurrency community eagerly watches to see if it will sustain its momentum and achieve new heights in the coming months.
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