Thursday saw the BTC/USD pair make a higher high, breaking through the $65,000 resistance. Friday is so far showing a daily confirmation above the resistance, which, should this be successful, will provide the platform for the next leg up towards the major $70,000 resistance.
Greed is back
Source: Alternative.me
The bull market is back. Sentiment is tipping back to Greed across the market, as displayed by the Fear and Greed Index. Only last month, this indicator was deep in the Fear, at a score of 30. What a difference a few weeks makes.
The U.S. Spot Bitcoin ETFs are buying again, with only one net outflow day in the last ten. Thursday’s net inflow was the biggest since July, at $365.7 million, as institutional buyers are perhaps rushing in to lay their bets before the $BTC price takes off again.
M2 money supply breaks out
Source: @BittelJulien
Looking further out, macro analyst Raoul Pal retweeted a Julien Bittel post on X, showing that the Global M2 money supply has broken out. Both analysts are confident that this indicator will push crypto much higher. Bittel commented on his and Pal’s “Everything Code” view:
“And if our hypothesis around The Everything Code is correct, this is still going much, much higher…”
Short term resistances are now support
Source: TradingView
In the short term time frame, $BTC is indeed heading higher. Both horizontal levels at $63,600, and $65,000, which were resistances on Thursday, are now supports on Friday.
The price is potentially heading back to the top of the channel, which it could theoretically meet at $68,000 through to $70,000. The next Fibonacci level for this move would be at the 1.618, at $72,750.
Fibonacci levels suggest $102,000 and then $155,000
Source: TradingView
The weekly chart for $BTC shows a much clearer macro picture for the king of the cryptocurrencies. The price is currently surpassing the tops of the candle bodies for the last bull cycle in 2021, and the top of the bull flag is now very close.
It can be seen how accurate the Fibonacci levels are for the whole of this Bitcoin bull cycle. The 0.786 Fibonacci is now support, and the next major level (1.618) is way up above at $102,000. Also, if one measures the move for the bull flag, this gives a target of just over $100,000.
Whichever way one looks at this, things do look very promising for Bitcoin going forward. Fibonacci levels have predicted the major moves for Bitcoin throughout its previous bull cycles, so it might be expected that this will continue to be the case. If $100,000 is achieved, the next big Fibonacci level (2.618) is at $155,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/09/bitcoin-btc-overcomes-resistance-70000-is-next