Bitcoin price has stabilized above the crucial psychological level of $60,000, with cryptocurrency analysts expecting further upside in the coming weeks.
Bitcoin (BTC) traded at $60,200, its highest level since August 27, as investors returned to riskier assets ahead of the Federal Reserve’s decision.
Analysts are optimistic.
Gold prices jumped to a record high while US indices such as the Dow Jones and the Nasdaq 100 posted their best week in months,
It is worth noting that Bitcoin appears to have avoided forming a death cross pattern, which occurs when the 200-day and 50-day moving averages cross each other. Instead, it has moved slightly above both averages, which is a positive sign.
Meanwhile, some of the most prominent cryptocurrency analysts are bullish on the currency. X PostA cryptocurrency analyst who uses the pseudonym Titan has suggested that the coin could reach $92,000.
His theory is that Bitcoin tends to move at least 40% whenever it crosses the 50-day simple moving average. He expects the currency to jump 71% in the coming months.
In a separate post, he noted that Bitcoin has reclaimed the Tenkan Kijun and moved above the Kumo Cloud of the Ichimoku Cloud Indicator. The RSI has also broken through the multi-month trend line, indicating further upside.
In another post on X, Michael van de Poppe, a popular analyst with over 724k followers, suggested that Bitcoin could remain in a consolidation phase and then see a bullish rally towards the end of the month or early October.
Santiment, a popular cryptocurrency analytics firm, has also identified potential bullish catalysts for Bitcoin.
In a post, he noted that Bitcoin is seeing more accumulation by whales and sharks at a time when supply on exchanges is declining.
Bitcoin trading volume drops on exchanges
CoinGlass data indicates that cryptocurrency volume on exchanges has fallen to 2.34 million, down from its year-to-date high of over 2.72 million.
This is a sign that many Bitcoin holders have no intention of selling their coins anytime soon. Instead, some large Bitcoin holders like MicroStrategy have continued to accumulate their coins.
There is also a seasonality to Bitcoin. According to CoinGlass, Bitcoin tends to have negative returns in the third quarter and then rise in the fourth quarter.
It has fallen in seven third quarters since 2013 and risen in five.
The average return in Q3 is 5.59% while the average return in Q4 is 88%. September is usually the worst month for Bitcoin while October and November are the best.
Another incentive, as we wrote on September 14, Stablecoin holdings by smart money investors have continued to move lower this year.
After peaking at 35.17% following the FTX crash in November 2022, it has fallen to just 3.92%. This is a sign that most smart money investors are fully invested in coins like Bitcoin and Ethereum (ETH).
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