A new analysis suggests that Bitcoin‘s BTC/USD correction phase may have come to an end, with experts now predicting a potential surge towards the $70,000 mark.
What Happened: According to a 10x Research report, trading signals have increased long positions to 70% net long for the first time, indicating a favorable buying opportunity for both Bitcoin and Ethereum ETH/USD with a 2-3 month horizon.
The report highlights that weekly reversal indicators are showing signs of bottoming out for the first time since the correction began in March, signaling a more positive outlook for the leading cryptocurrency.
Bitcoin’s weekly Relative Strength Index (RSI) is attempting to establish a medium-term low at 50%, further supporting the bullish sentiment. Key support levels are identified at $52,599 and $56,000, with resistance at $64,490.
Analysts suggest that a break above the August short-term high of $64,490 could propel Bitcoin toward $70,000 or beyond.
The recent 50 basis point rate cut by the Federal Reserve has added an interesting dynamic to the market.
While historically, such cuts have led to short-term rallies in Bitcoin, lasting 1-2 weeks, the long-term impact remains to be seen.
Fed Chair Powell’s cautious framing of the rate cut has left room for interpretation regarding the broader economic outlook.
Interestingly, funding rates for Bitcoin and Ether have returned to double digits, indicating significant bets from futures traders.
This renewed momentum is primarily driven by activity in the futures market, with rising trading volumes in Korea suggesting increased participation from retail investors.
What’s Next: As the cryptocurrency market enters the historically bullish fourth quarter, many eyes will be on Benzinga’s Future of Digital Assets event on Nov. 19.
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