Bitcoin has been on an upward trajectory trading at $60,822.96 reflecting a 1.95% gain in the last 24 hours. The crypto market cap stands at $1.2 trillion making it the top digital asset by market value. With a 24-hour trading volume of $34.86 billion, Bitcoin's dominance in the crypto market continues to grow.
The recent Federal Reserve minutes revealed a dovish stance, with a strong focus on employment, making a rate cut in September almost certain. This sentiment backed up with expectations that Fed Chair Jerome Powell will reinforce this outlook in his upcoming speech, has created a favorable backdrop for risk assets like Bitcoin.
The Federal Reserve's shift in focus from inflation to employment has been a key driver for Bitcoin's recent price action. With inflation data becoming less central to policy decisions, the market is pricing in multiple rate cuts to sustain economic expansion. As a result, Bitcoin often seen as a hedge against inflation and economic uncertainty, has attracted adoption.
Looking at its technicals, As seen in our previous report BTC dropped to $56K and filled a fair value gap present in the lower timeframe before bouncing back to trade bullish.
The current technical setup suggests that Bitcoin's next target is the resistance at the bullish flag, which is around $68K. If Bitcoin can break and close above this level, it could start a bull rally.
The MACD indicator on the daily chart shows a bullish crossover, with the signal line below the MACD line and the histogram positive above the zero mark. This indicates that the upward momentum is strong and likely to continue.
Additionally according to a recent tweet by Santiment few days ago, Bitcoin whales and wallets holding between 100 and 1,000 BTC have added 94,700 BTC over the past six weeks. This accumulation is a bullish signal as it suggests that key market players are positioning for further gains despite recent price drop.
Data indicate that the overall sentiment in the crypto market has turned bullish particularly among the top market cap cryptos. Since the August 5th market crash bullish outlook has been improving with many investors and traders regaining confidence in the market's recovery potential.
Moreover, the recent price action has been consistent with historical patterns and with Bitcoin respecting established setups even after the recent crash. This consistency together with positive market outlook suggests that Bitcoin could be set for a price explosion in the near term.
With the Fed's dovish stance, technical indicators signaling strength and positive market outlook, Bitcoin appears to be set for further gains. Keep an eye on our $68,000 resistance and target level, as a breakout will trigger a new Bull wave.