Bitcoin bounced back sharply on Friday, reclaiming the $63,000 level after investors quickly set aside concerns about rising inflation in the U.S. The leading cryptocurrency saw a 7% rise from Thursday’s dip below $59,000, marking a strong reversal following this week’s trend of losses during U.S. trading hours.
Shifting Focus from Inflation to China’s Fiscal Policy
The rebound came after the U.S. CPI report showed hotter-than-expected inflation numbers. Despite that, investors chose to shift their focus to China’s upcoming fiscal policy update, expected on Saturday. This quick change in sentiment led Bitcoin to recover swiftly, signaling that the market may not be as worried about inflationary pressures as initially thought.
Breaking Through Key Resistance Levels
According to popular analyst Rekt Capital, Bitcoin is now set to test new heights. On Thursday, the analyst noted that Bitcoin was retesting the $60.6K level. Now, after Friday’s recovery, Rekt Capital believes Bitcoin is eyeing the August highs, signaling that resistance may be weakening.
In Rekt Capital’s words:
“Strong recovery from Bitcoin since yesterday. This strong buy-side reaction shows growing signs that the August highs (purple) are weakening as a resistance. As a result, Bitcoin should be able to break those August highs with ease upon next revisit.”
Historical Trends After Halving and September Gains
Let’s take a moment to remind ourselves that we’re entering a critical period for Bitcoin. We’re now six months past the halving event, a time that has historically triggered major price spikes. If that wasn’t enough, data shows that when Bitcoin ends September with gains, the next three months—October, November, and December—have always followed up with additional gains each month.
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