Key Points
- Bitcoin’s price is expected to surge due to rising global liquidity and favorable macroeconomic conditions.
- Bitcoin’s price is currently trading at $66,000, with the next major target being new highs above $66,700.
Bitcoin’s Rising Strength
Bitcoin [BTC] is demonstrating resilience, propelled by an increase in global liquidity and positive macroeconomic circumstances. The global liquidity has grown by 0.92% to $132.8 trillion, the highest since early 2022, which is anticipated to favorably impact Bitcoin.
The increase in collateral values and actions taken by China’s central bank have contributed to this surge. Though the Federal Reserve has yet to implement a stimulus, market sentiment is positive regarding future rate reductions. These elements indicate that Bitcoin’s prices could rise, making the last quarter of the year particularly bullish for the broader crypto market.
Bitcoin’s Price Action and Key Levels
Bitcoin’s price recently rebounded off the crucial 0.786 Fibonacci retracement level and is currently trading at $66,000. This level has consistently served as a key indicator for both upward and downward movements this year.
The pattern of adhering to this level indicates that Bitcoin’s price action is in sync with global liquidity trends. As liquidity continues to increase, Bitcoin’s price is expected to rise, with the next major target being new highs above $66,700.
The increase in global liquidity is likely to benefit Bitcoin as it continues to serve as a primary hedge against monetary inflation, along with gold.
Impact of September’s Bullish Close
This month concluded with a 7.35% increase, making it the best-performing September in Bitcoin’s history. This bullish sentiment is reinforced by Bitcoin’s ability to resist recent corrections and maintain upward momentum.
Despite market expectations for a decline, AI models from Spot On Chain accurately predicted a bullish month, stating, “There’s a 69% chance of a new all-time high this month and a 54% chance of Bitcoin reaching $100K by year-end.”
The broader crypto market is also anticipated to benefit from favorable macroeconomic factors, particularly potential rate cuts from the Federal Reserve and the European Central Bank.
Liquidity Clusters to Watch
Key liquidity clusters for Bitcoin are emerging as the price increases. Recent retraces towards $63,225 allowed Bitcoin to grab liquidity, setting the stage for the next move.
The next high-liquidity clusters are located between $66,700 and $66,750, while lower clusters around $62,050 to $62,120 provide support.
These levels will be crucial to watch as Bitcoin continues its upward trend, potentially leading to a breakout to higher prices. The combination of rising global liquidity, bullish technical patterns, and positive macroeconomic signals position Bitcoin for higher prices in the near future.