Today the price of Bitcoin seems to want to continue the growth recorded in the last two days, with the cryptocurrency price having exceeded the psychological level of 60,000 dollars.
At the moment, however, the situation remains uncertain, with technical analysis suggesting a possible ranging situation in the coming days.
Meanwhile, on-chain data suggests a major price rally is on the way as physical gold searches for new highs.
What does the market have in store for us between now and the end of the year? Let’s see all the details below.
Bitcoin Price Back Above $60,000 Today: Bull Market Restarts?
Bitcoin seems to be in good spirits today with the price of the cryptocurrency back above $60,000 after the recent drop in price in the past few weeks.
Following the collapse in early August, the currency has recovered about 22% of the lost ground, bringing back the optimism typical of a bull market.
Prices are back above the 50 EMA on 4h time frame.with the last few hours of trading being accompanied by low volatility.
Volumes are also not very significant today and suggest that the price trend is still governed by uncertainty.
While Bitcoin waits to take a clear direction, Technical analysis suggests that the most likely scenario in the next few days will be ranging.
Hypothetically, the cryptocurrency could move very easily between $55,000 and $70,000, without any key levels being breached.
After the month of August, typically marked by low speculative activity, from September onwards we can expect a change in intensity in crypto trading.
If Bitcoin keeps its price above the highlighted low range, then we could start thinking about a bullish continuation of the performance..
In fact, bullish catalysts for market dynamics could be introduced in September, driven by the probable cut in interest rates by the FED in the United States.
The goal for Bitcoin supporters is therefore to hold out for a few more weeks, waiting for the shorts to disappear from circulation.
In reality, however, taking a look at the historical monthly returns of Bitcoin, it is evident that statistically in September the price of the crypto asset closes in the negative.
Since October, however, we have seen significant positive price variations almost every year, with an average of +22.90%.
Of course, this does not mean that Bitcoin will definitely grow in the coming months, but it has a good chance of seeing some green in the last quarter of the year.
On-chain data suggests accumulation is underway: crypto price could explode higher
While today the price of Bitcoin is slightly rising, the On-chain data shows that at this price the current scenario is still dominated by wild accumulation.
Since the beginning of the year, while the cryptocurrency has seen a strong increase in value on the market, reserves on exchanges have started to drop dramatically.
Today, the share of Bitcoin on CEX appears to have fallen to its 2018 lows, synonymous with the fact that investors are stocking up on digital gold.
In total, around 300,000 BTC have left centralized exchanges and moved to private, non-custodial wallets since January.
At this rate, we will soon face a supply shock situation due to a lack of liquidity to absorb the selling pressure.
The result would be an explosion in the price of the crypto asset.
Another on-chain data that gives pause for thought about the possibility of an imminent bull market recovery concerns the percentage of BTC currently in profit.
As shared on X by the analyst “OnChainCollege”, As of today, only 71% of the circulating supply is in profit. The last time Bitcoin reached this level, its price was $28,000.
This means that while the speculative market has cooled, prices have generally risen, highlighting a bullish outlook for the cryptocurrency.
This data suggests that there will still be several opportunities to take profits at a higher price level than the current one.
The percent of Bitcoin sitting in profit reset to the lowest level since October 2023.
71% of the supply is in profit when price hit $54K.
The last time 71% of the supply was in profit, price was $28K.
Overheated market cooled down to LY levels but at double the price.
Few. pic.twitter.com/NAAY9JQLdT
— On-Chain College (@OnChainCollege) August 8, 2024
Gold Rally May Accompany Bitcoin Price Surge
Strengthening the bullish theses on the price of Bitcoin today we also find the presence of a strong gold, with its price growing strongly in recent days.
Generally in fact Bitcoin moves in a more or less correlated manner to its physical counterpart, which often anticipates major movements on the chart.
Both assets serve as a safe haven against inflation and the risks of geopolitical tension. They both have in common the property of scarcity (physical and digital) and exclusivity.
From March onwards however, while gold was updating its historical highs, Bitcoin was marking significant drops in price.. In the coming months, the correlation is likely to become more pronounced again, with an uptrend in the crypto sector..
Charles Edwards, founder of Capriole Investments, revealed on X that statistically the cryptocurrency follows the trend of gold after a few months.
In his view, this situation looks promising for the future price of Bitcoin.
His predictions can only be positive.
Despite everything, we remember how since the beginning of the year gold, despite breaking its highs, has grown “solo” of approximately 20%.
In comparison, Bitcoin, which has faced more ups and downs, is up 45%, showing greater volatility and speculative activity.