Bitcoin monthly close, fresh bullish narratives lead BTC traders to aim for new price highs
2024.09.29 18:33
Bitcoin (BTC) price is on the verge of a notable trend change in its weekly and monthly timeframe chart. On both timeframes, a close above $65,000 sets a higher high and breaks the trend of lower highs which has defined BTC’s price action fo the past 6 months.
BTC/USDT weekly chart. Source: TradingView
Prior to this week’s rally above $66,000, the crypto market had been suffering from narrative exhaustion but a new set of catalyst have led traders to believe Bitcoin price is ready to embark on the next leg higher.
In the past few weeks, the following events occurred:
- Spot Bitcoin ETF inflows saw a surge in inflows totalling $494 million, bringing the total cumulative flow to $18.8 billion.
Cumulative spot Bitcoin flows. Source: Farside Investors
- MicroStrategy announced the purchase of 18,300 Bitcoin between Aug. 6 and Sept. 12, followed with an additional purchase of 7,420 BTC on on Sept. 20.
- US stock markets and gold hit new all-time highs.
- The PBOC announced rate cuts and other money printing measures which traders say align with Bitcoin price expansion.
- Data emerged showing global money supply and US money supply is set to expand as a result of rate cuts.
Ultimately, traders believe that central bank interest rate cuts and the possible return to loose monetary policy will lower the high yields offered on many investment instruments and incentivize yield seeking in Bitcoin and other cryptocurrencies.
Related: Bitcoin price to $62K? Bearish div hints at a slow start to Uptober
A brief return to $62K?
From a technical point of view, Bitcoin has managed 3 daily closes above the 200-day moving average and the price trades above the 196 day long descending trendline. As mentioned earlier, a close above $65,000 sets a higher high candle for the weekly and monthly timeframe.
BTC/USDT 1-month chart. Source: TradingView
In the coming week, price pullbacks to the 20-day moving average at $62,000 would not be abnormal. Whether or not traders step in with sufficient force to defend this level and press through asks in the $66,000 to $68,000 zone will be the actions to look out for.
Beyond the day to day price action, one thing that is clear is that the new set of bullish Bitcoin narratives that traders have been waiting for have arrived, potentially hinting that BTC price is gearing up to test new all-time highs.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
