Bitcoin

Bitcoin: 5 Key Highlights for the Week

1) All eyes on the $65,000 prize

Bitcoin kicked off the final week of September by reaching a one-month high, closing the week with a bullish outlook. The price surged to $64,700 after the weekly close, with $65,000 being the next key resistance level to watch.

BTC/USD briefly hit $64,700 before consolidating near the weekly close level, signaling potential continued momentum. Traders on Binance are monitoring order book trends closely. Notably, Skew, a well-known trader, highlighted the positive trend of rising limit bids, suggesting that market support is holding strong as prices increase.

“There’s key bid liquidity around $62K and deeper support around $59K, both of which are critical for maintaining the current uptrend,” Skew noted. $65,000 is widely seen as the next significant hurdle, with plenty of liquidity waiting to be tested at that level.

Other market watchers echoed this sentiment, with liquidity data showing support gathering around $63,000, holding the price steady. Some traders are optimistic that a breakout past this point could lead to new all-time highs.

2) Bitcoin RSI teases “most reliable” bull signal

The Relative Strength Index (RSI) has emerged as a critical indicator for Bitcoin’s mid-term outlook. The weekly RSI, which had been trending downward, is now showing signs of a breakout, sustaining above the midpoint of 50. This movement is often considered a reliable precursor to significant price gains.

As shared by Titan of Crypto, a breakout in the weekly RSI could lead to a sharp upward movement by the end of the year, with a potential intermediate target of $85,000. Another prominent analyst, Kevin Svenson, emphasized that the RSI breakout is historically one of Bitcoin’s most trustworthy bullish signals, pointing to a potential price surge extending into 2025.

3) Rate hike fever keeps the risk-asset mood high

Risk assets, including Bitcoin, are riding a wave of optimism following the Federal Reserve’s recent 0.5% interest rate cut. The cut surprised markets, and expectations are growing for further reductions before the year ends.

Since the rate cut announcement on September 18, Bitcoin has climbed about 6%, with the Fed’s next decision scheduled for November 7. The S&P 500 has also rallied, reaching new all-time highs, as markets interpret the rate cuts as positive for economic growth and corporate earnings.

Mosaic Asset, in their latest newsletter, highlighted how the lower rates are supporting economic activity, despite already loose financial conditions. With more economic data, including jobless claims and Q2 GDP figures, expected later this week, markets could see heightened volatility.

4) Bitcoin bull market approaches “greatest gains”

As Bitcoin enters a key phase of its bull cycle, history suggests that the most significant price gains are still to come. Research from K33 Research shows that Bitcoin is now around 672 days into the current bull market cycle, which aligns with previous patterns of rapid growth leading to new all-time highs.

Looking back, the final 365 days of past bull markets have delivered the most substantial gains. If history repeats, Bitcoin could be entering its most explosive growth phase yet. Analysts are closely watching whether this pattern will hold, with an upside breakout potentially on the horizon.

5) “FOMO” warning for crypto sentiment

Despite Bitcoin’s recent price surge, market sentiment remains cautious, as reflected by the Crypto Fear & Greed Index. The index registered a score of 50/100 on September 23, indicating a neutral mood. This suggests that while prices are rising, market participants are not overly euphoric just yet.

However, social media activity is showing signs of heightened optimism, which could be a warning sign. Research firm Santiment cautioned traders to be wary of excessive optimism, as cryptocurrency markets often move against the prevailing sentiment when social media narratives become too one-sided. This could mean that a sudden downturn or correction is possible if the “FOMO” (fear of missing out) sentiment grows too strong.