Can Bitcoin Rise Alongside Us Stock Markets?

Posted on August 21, 2024 6:33 AM
Cryipto News
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Bitcoin surpassed $61,000 on August 20, sparking new hopes of a comeback for investors.

The macroeconomic outlook could provide a new "driving force" for Bitcoin. The leading cryptocurrency, Bitcoin (BTC), gained significant momentum with a 2.4% increase during the day. This rise, especially in contrast to the weak start of the week, has captured investors' attention. Analysts remain optimistic that macroeconomic developments could positively impact BTC.

QCP Capital noted that corporate stock buybacks reaching $1.15 trillion this year could support the market. Additionally, with gold reaching all-time highs, demand for riskier assets has increased. QCP suggested that this rise in gold could potentially lift Bitcoin as well.

With Federal Reserve Chairman Jerome Powell expected to provide new clues about loose monetary policies during his speech at the Jackson Hole symposium, these developments could positively influence Bitcoin, similar to the rally observed in equities.

As Bitcoin continues to fluctuate within a specific range, the market remains cautious. BTC has not yet breached the significant resistance level of $70,000 and is trading within a downward-sloping channel.

Popular trader Mark Cullen supported this scenario with a chart showing that Bitcoin surpassed the $59,500 level over the weekend, increasing liquidity and reaching the upper trend line. This development is considered a significant step for BTC to gain upward momentum.

Analyst Rekt Capital compared Bitcoin's price movements since the record high in March with past periods. Rekt Capital noted, “History has repeated itself,” and added:

“Bitcoin is currently attempting to reclaim the channel base as support. A weekly candle close above the channel base could signal a bullish trend.”

Credible Crypto is among the analysts predicting that Bitcoin will continue its sideways price movement in the short term. On the X platform, the analyst shared a chart highlighting the $56,000 support level and commented, “We expect the green zone to hold for now, but testing this range may take a bit more time.”