Bitcoin has surged nearly 14% within a week, approaching $124,000, attributed to growing US demand fueled by shifts in Federal Reserve monetary policy and expectations of a strong fourth quarter.
Key takeaways:
- Bitcoin prices jumped by 14% this week amidst uncertainties due to a US government shutdown.
- An on-chain analysis indicated a considerable influx of $1.6 billion in buying with a Coinbase premium gap of $92, demonstrating robust US demand.
- Analysts pinpoint resistance levels around $130,000, while anticipating a potential price discovery next week.
As of now, Bitcoin trades just shy of $124,000 after rising from a low of $108,600 last Friday. This uptrend marks a significant moment, as it could propel Bitcoin into new price-discovery territory, especially with the total cryptocurrency market cap exceeding $4.21 trillion, reflecting a robust rally across the board.
Moreover, the ongoing shutdown of the US government seems to have paradoxically benefited Bitcoin as uncertainty grows among investors. Market observers noted, “Bitcoin’s rally is genuinely organic, and factors such as Trump’s stimulus proposal have further potential implications for its price movement.”
Regarding Bitcoin’s purchasing pressure on-chain, Analyst Maartunn highlighted a buying volume spike exceeding $1.6 billion in a mere hour across exchanges. Concurrently, the Coinbase Premium Gap has hit $91.86, indicating elevated prices US investors are willing to pay.
Investor expectations for the coming week suggest the possibility of further price discovery, with indicators pointing towards $120,000 establishing support.
“The breakout phase is crucial, as new highs get not only established but sustained,” remarked Trader Rekt Capital, emphasizing that vital upcoming daily closes will be essential to maintain upward momentum.
In conclusion, this article serves as informational content and does not serve as investment advice. Readers should engage in their research prior to making any trading decisions.
