Bitcoin has experienced a notable rise, extending an overnight rebound amid an improvement in risk sentiments.
The crypto rose by 3% today, reaching $61,024 and effectively recovering from the sharp losses it endured last week. Despite this rebound, Bitcoin’s further gains remain constrained by limited institutional inflows.
$65,000 is The Target
Analysts and industry leaders anticipated further upsurge in Bitcoin’s value following the inflation data release. For instance, Dr. Martin Hiesboeck, Head of Research at Uphold, noted that Bitcoin could potentially reach $65,000 if the Consumer Price Index (CPI) numbers do not negatively impact the market.
#Bitcoin to 65k today if CPI numbers don’t spoil it. #nfa
— Dr Martin Hiesboeck (@MHiesboeck) August 14, 2024
The market’s positive movement reflects rising expectations for a 50 basis point U.S. interest rate cut, following the Producer Price Index (PPI) data released on Tuesday.
Despite traders still considering the possibility of a 25 basis point reduction, the recent Consumer Price Index (CPI) data, which shows general inflation below expectations but core inflation in line with predictions, supports the case for lower interest rates.
Such reductions typically enhance liquidity, making speculative assets like Bitcoin more attractive to investors.
Technical Analysis Highlights Bull Pennant Pattern
Additionally, technical analysis from Ali Martinez points to a bullish trend for Bitcoin, supported by the formation of a bull pennant pattern on shorter time frames.
This pattern typically follows a strong uptrend, characterized by a sharp price increase followed by a consolidation phase. The consolidation phase forms a symmetrical triangle, suggesting that the previous uptrend may continue upon a breakout.
On Martinez’s chart, Bitcoin is currently trading near the 0.786 Fibonacci retracement level, indicating a key area of support during the consolidation. Should Bitcoin break out above the upper boundary of the pennant, a significant upward move is likely.
The levels around $63,556 and $64,110 are key targets where price might face resistance. This aligns with the expectation of a surge towards $64,000 if the bullish momentum persists.
The price of Bitcoin has risen by over 3% in the last 24 hours and by 6.6% over the past week to trade at $60,941.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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