Bitcoin has quickly jumped above $60,000 and almost broke the $65,000 in an upward trend, following the German government’s completion of its Bitcoin sales and positive macroeconomic signals. The surge raises hopes for a strong second half of 2024 where we might be seeing new all-time highs for the flagship cryptocurrency.
Positive Economic Indicators for Bitcoin
The economic environment is looking favorable for Bitcoin. Unemployment in the United States has risen to 4.1%, the highest since November 2021. Job growth is at its slowest pace since March 2021, wage growth is at its lowest since May 2021, and Core PCE inflation is the lowest since March 2021.
These factors suggest the U.S. economy is cooling, which may prompt the Federal Reserve to cut interest rates in September. This possibility seems to be influencing Bitcoin’s price positively.
Earlier this year, rising inflation and uncertainty about Federal Reserve rate cuts caused Bitcoin’s bull market to stall. Now, as inflation decreases and rate cuts appear more likely, speculation about multiple rate cuts has emerged.
Potential for a Renewed Bitcoin Bull Market
Bitcoin’s ability to start a renewed bull market depends on several factors. A potential rate cut in September is positive but not decisive.
A 0.25% rate cut alone cannot drive Bitcoin to new all-time highs. The narrative shift from bearish to bullish regarding the Federal Reserve’s rate policy is crucial.
While the exact impact on Bitcoin’s price remains uncertain, the outlook for the second half of 2024 is becoming more promising.
Bitcoin’s Current Performance
As you can see in the above chart, Bitcoin’s price is performing well, gaining several percentage points today. It is nearing a key price level. If it surpasses this level, it could positively impact the price further.
Key Price Levels for Bitcoin
Two price levels are significant at the moment. The lower level highlighted by a red horizontal line, around $56,500, offers enough support to prevent further declines. Recently, buyers drove the price up from this point. Now, Bitcoin has already moved towards the next level, around $64,000 (the other red horizontal line), almost hitting the $65,000 today according to CoinMarketCap data.
The $64,000 level is critical because surpassing it creates a higher high on the daily chart, usually leading to a positive price trend.
Short-Term Upward Trend
Bitcoin has been on an upward trend, with higher highs and higher lows. This trend will likely continue unless a lower low is made.
Currently, the chance of breaking this trend seems low, as Bitcoin has recently made a significant upward move. It can fall quite a bit without breaking the upward trend. If Bitcoin makes a higher low, it may attempt to break through the resistance at $64,000. If successful, the upward trend could push towards a new all-time high. Keep an eye on this trend and these price levels.
For more information on how to read price charts, please have a look at our guide HERE.