Bitcoin Battles to Regain Ground as Q3 2024 Commences: A Deep Dive into Bullish Triggers and Future Prospects
Summary:
As Q3 2024 begins, Bitcoin (BTC) is battling to regain its lost standing on the path to all-time highs, with the $60,000 mark standing as a stronghold. The question of whether the bulls can gain the upper hand is raised as traders continue to focus on key bullish trendlines to reinforce confidence in Bitcoin's price rebound. Overarching this week is the potential impact of US unemployment data and inflation hints from Federal Reserve officials on overall volatility. Despite network fundamentals charting a state of "capitulation," Bitcoin's recent price rebound casts a glimmer of hope for miners. Lastly, with the quarterly close triggering a significant improvement in overall crypto market sentiment, indications of a possible recovery are on the horizon.
As we venture into Q3 2024, Bitcoin (BTC) heralds a promising start with a robust challenge to regain its lost standing on the path towards all-time highs. It's uplifting to see Bitcoin’s strength gradually returning, with the combined weekly, monthly, and quarterly support sticking to $60,000. BTC, having seen a 4% rise in the past 24 hours, certainly has a gruelling task ahead in maintaining its bullish market.
There have been two striking dips below the $60,000 threshold during several months of consolidation, seen increasingly as bear traps. The question remains whether bulls can gain the upper hand. In the future, traders will be setting their focus on $60,000, amongst other crucial bullish market trendlines to generate more assurance in Bitcoin's price rebound.
This week, macroeconomic data will contribute to the overall volatility, with a host of US unemployment data up for discussion, accompanied by inflation hints from top Federal Reserve officers. Also in focus is the fluctuating state of Bitcoin miners. After several weeks of hash rate "capitulation," will the current low hash rate deter the industry from resurging?
Bitcoin rallies towards all-time highs after an encouraging weekly, monthly and quarterly close above $62,500 due to a series of upward spikes on the last day of June. Momentum continued as BTC/USD reached local highs of $63,724 on Bitstamp before holding slightly lower, according to data from Cointelegraph Markets Pro and TradingView.
The immediate future hints at caution despite this promising outlook. Market participants remain wary, with plenty of room for sentiment to improve. According to Keith Alan, co-founder of the trading database Material Indicators, Bitcoin's current rally off the lows does not show enough momentum to close above the 21-week moving average, adding that a failure to surpass it could provoke another test of the lows before BTC can revisit former high territories.
In addition to unemployment - a common sore spot for Bitcoin and altcoins - Fed Chair Jerome Powell will address a monetary policy forum in Sintra, Portugal, adding to the market volatility. Alongside this, meeting minutes regarding inflation policy will be published.
The forthcoming trends in the BTC price are pinned at an important $64,000 support line, above which lies a range of bullish trendlines. Cointelegraph reported that, alongside the 21-week moving average, the $64,000 mark is the point where Bitcoin's short-term holder (STH) cost basis aligns. This cost basis has served as a robust support throughout the ongoing bull market, barring one exceptional instance in August 2023.
While the Bitcoin price shows some signs of revival, network fundamentals chart a path that some describe as "capitulation". However, the current low hash price making the industry reconsider its step back provides a glimmer of hope for miners.
Overall crypto market sentiment has seen a significant revival amid the quarterly close. Crypto Fear & Greed Index demonstrates a noticeable shift towards "greed". Lastly, Santiment, a research firm, noted Bitcoin's low Relative Strength Index (RSI) and the continued negative sentiment among the crowd, indicating the possibility of recovery soon.
Published At
7/1/2024 11:22:19 AM
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