Created on September 23, 2024
During the past week of trading, Bitcoin’s value has mostly moved horizontally above the support level at €56,000 per Bitcoin in anticipation of a more significant upward push. From a technical point of view, an inverse head and shoulders pattern can be seen forming which could indicate a bullish recovery for Bitcoin. From a fundamental point of view, the interest rate cut and a drop in US inflation could push BTC higher.
- Last week the value of Bitcoin Euro closed up +6.86% ending the Sunday session near €57,000 per Bitcoin.
- According to the Forex forecast, the value of Bitcoin has been trapped in a horizontal channel since reaching the all-time high in March 2024, but over time the value started to slide downwards breaking strong key support levels until reaching the €49,500 level for Bitcoin near which it reversed its upward trend after a short period of consolidation before breaking out of our primary upside target at €56,000 for Bitcoin.
- On a fundamental level, the US will have a lot of economic data to announce this week including inflation, GDP growth and some labor market data. On the European side, the week opened with a strong devaluation of the euro due to some unexpected Euro Area PMI data, but there are no other major macroeconomic data scheduled for the week.
Bitcoin Starts Rising Again
After nearly two months of horizontal movement, Bitcoin appears to have regained traction along the lines of stocks, although still significantly below its all-time high.
Among the main factors in favor of Bitcoin, the jumbo 50 basis point cut by the Fed and the second 25 basis point cut by the ECB have helped to devalue national currencies and reduce the opportunity cost of buying assets that do not pay periodic interest.
Furthermore, on Monday morning Eurostat announced an unexpected decline in the Euro Area manufacturing sector, causing a rapid increase in market expectations for a “rescue” from the central bank with further rate cuts to avoid a too significant slowdown.
Bitcoin Returns to Support Area Awaiting Breakout
In today’s Bitcoin forecast, the value of Bitcoin has returned to trade above the support level at €56,000 per Bitcoin, a very important level that, if it were to hold, could confirm the formation of an inverse head and shoulders pattern, announcing a trend reversal in the medium term and a possible return to our primary target.
However, it is also possible to see a slight resistance near the two previous relative highs, which could lead to a continuation of the current period of horizontal consolidation before an upward recovery. Check out the list of the best crypto brokers in Italy to trade Bitcoin this week.
Bitcoin Weekly Outlook
- Current resistance level: €57,750 for Bitcoin near previous relative highs.
- Current Support Level: €56,000 for Bitcoin near the 0.618 Fibonacci level and the horizontal resistance level
- Upside target: €62,000 for Bitcoin near the next key area.
- Downside target: €52,500 for Bitcoin near the key horizontal support area.
Considering the current trend of Bitcoin, the most likely weekly scenario seems to be a continuation of the horizontal trend above the support at €56,000 per Bitcoin before a possible recovery above the slight resistance imposed by the previous absolute maximums.
Despite this, the value of Bitcoin will be strongly influenced by the macroeconomic data that will be released during the days of Thursday and Friday by the States, so it is important to stay updated as the trend could change suddenly. Stay updated on the latest news from the best Italian brokers today and trade our forecasts with the CONSOB list of authorized brokers drawn up by the DailyForex experts.