|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Bitcoin (BTC) Price Eyes Pivotal Daily Close Above $64K as Market Cap Correlates with Stablecoin Supply
Oct 08, 2024 at 01:46 am
Bitcoin (BTC) price jumped 7.75% from its recent low of $59,815 on Oct. 3 to a monthly high of $64,448 on Oct. 7, demonstrating a bullish start
Bitcoin (BTC) price jumped 7.75% from its recent low of $59,815 on Oct. 3 to a monthly high of $64,448 on Oct. 7, demonstrating a bullish start to what may be a volatile week.
As illustrated in the chart below, Bitcoin briefly dropped under the 200-day EMA (yellow line) at the beginning of the month, but an immediate positional recovery above the indicator allowed prices to push higher over the past four days.
BTC/USDT on the 4-hour chart. Source: Trading View
Bitcoin price analysis: Key bullish pattern 'locked in' after BTC re-tests crucial supportBitcoin declined 8.8% between Sept. 30 and Oct. 4, leading to a key re-test of the psychological level at $60,000. Since then, the price has recovered to almost $64,000, which currently puts the monthly return on investment (ROI) at a positive value.
Jelle, a crypto analyst, believes that BTC’s recent recovery confirms a strong bullish pattern. When Bitcoin moved above $65,000 at the end of September, it formed the first higher-high (HH) pattern in five months. Now, a higher low (HL) confirmation is key for the uptrend, which the analyst believes is currently “locked in” after Bitcoin re-tested the key resistance/support region.
Bitcoin daily chart analysis by Jelle. Source: X.com
Meanwhile, another independent analyst, Titan of Crypto, highlighted an upcoming weekly golden cross for Bitcoin, which has bullish historical odds from 2023. The analyst mentions,
Bitcoin price “correlates” with the stablecoin market cap, but a clear trend is yet to be established
Despite Bitcoin’s recent recovery, it was down 2.87% in the last seven days. This might have been due to its relationship with stablecoins. IT Tech, a verified on-chain analyst on CryptoQuant, highlighted a key correlation between BTC and stablecoin’s market cap. The analyst says,
“Bitcoin price correlates with the stablecoin market cap, but a clear trend is yet to be established. A drop in the stablecoin supply may indicate increasing selling pressure and reduced liquidity, leading to BTC’s price correction.”
Since Sept. 30, the net USDT market cap has increased by $161 million, which means it should have had a positive impact on Bitcoin price. However, the total USDC market cap change is negative $654.83 million, which brings the total stablecoin net change to negative $493 million.
Bitcoin USDC Market cap change chart. Source: X.com
Hence, an improving stablecoin market cap could be a potential signal of higher Bitcoin prices in the following weeks. Mister Crypto, an independent investor, also mentions the same correlation in an X post, stating:
Bitcoin versus stablecoin supply chart by Mister Crypto. Source: X.com
Bitcoin eyes pivotal daily close above $64K as bulls attempt to push toward the monthly highThroughout the past 24 hours, Bitcoin bulls have pushed the price to a local high of $64,400, attempting to reach the recent swing high and monthly top. A daily close above this level is crucial for the continuation of the bullish momentum.
From a technical perspective, the chart shows an HH and HL pattern, but a daily close above $64,000 remains pivotal. While BTC reached a high of $64,400 a few hours ago, it is currently attempting to close above $64,000.
Bitcoin remains between the supply zone of $64,130-$63,300, which was formed on Sept. 1. Since spot bids haven't been involved in the recent rally, swing traders could look to take profits on their swing longs around this price range.
BTC/USDT on the 6-hour chart. Source: Trading View
However, a daily close above $64,000 will be a strong indication of continued momentum since it would illustrate a position above the supply zone and a confirmed monthly high.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.