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Bitcoin Surges to Seven-Month Highs
Confirmed
In Short: Bitcoin surged to new seven-month highs, trading above $81,000 following a 6% surge on Friday, according to FXStreet and Fxstreet.
Bitcoin surged to new seven-month highs, trading above $81,000 following a 6% surge on Friday, according to FXStreet and Fxstreet.
The renewed rally in Bitcoin has come after months of volatility, with the cryptocurrency breaking through the May highs in early trading.
The bulls have reemerged, preventing Bitcoin from slipping further, as noted by CryptoPotato.
Bitcoin's price calmed over the weekend at around $77,000, after heightened volatility following the release of US CPI data.
Strong institutional demand continues to support Bitcoin, with US-listed spot Bitcoin ETFs recording nearly $1 billion in net inflows for the third straight week.
Despite the recent surge, Bitcoin faces near-term risks, including ongoing profit-taking and persistent macroeconomic headwinds.
On Monday, Bitcoin was trading near $79,500, consolidating near the recent highs after gaining more than 3.4% last week.
The timing of Bitcoin's recovery is ideal, as it moves back into the ten-month positive period, reversing its negative returns for August and September.
Bitcoin's recovery follows a period of falling to a yearly low of $57,800 in July, with gains of nearly 33% and two consecutive months of gains in July and August.
However, despite Bitcoin's recent surge, the expected altcoin season has not materialized as anticipated, with Ethereum and Ripple facing critical technical levels.
The market's reaction to the upcoming US Core CPI report could influence Bitcoin's trajectory, with a soft report potentially boosting Bitcoin while an upside surprise could trigger a selloff.
Escalation in geopolitical tensions, including attacks between the US and Iran and Yemen's Houthis on Saudi energy facilities, has provided a tailwind for oil prices, impacting Bitcoin's price movements.
What this adds
The surge in Bitcoin's price has not been accompanied by a similar recovery in altcoins like Ethereum and Ripple, which face critical technical levels.
The market's reaction to the US Core CPI report and Fed rate hike expectations remains a key factor in Bitcoin's near-term outlook.
What's confirmed
- Bitcoin is trading above $81,000 holding firm after a 6% surge on Friday, linked to US financial watchdogs' efforts to structure crypto assets under existing rules following the CLARITY Act's failure to advance.
What's still developing
- The bulls started to reemerge at this point and didn’t allow bitcoin to slip any further.
- It has been months since Bitcoin has seen the world above $80,000, but it has finally managed to breach the May highs in early trading today.
- The best medicine for the cryptocurrency sector’s malaise has been a renewed rally in bitcoin and others.
- After the initial August bounce the excitement seemed to be fading, but the push through the May highs will reignite enthusiasm.
- On Tuesday, Bitcoin faced mild pressure, trading below $77,000, and Ripple lost strength, trading below $1.40.
- In light of this, I think only a soft Core CPI could give Bitcoin a boost in the short-term, while an upside surprise might exacerbate the risk-off sentiment and trigger a selloff, as the market could start pricing an even more aggressive path for rate hikes.
- On the daily chart, we can see that Bitcoin rejected the 82,500 resistance and pulled all the way back to the key 76,000 support.