Bitcoin (BTC) is showing powerful signs of an impending price rally, according to leading market analysts who point to a confluence of bullish factors in favor of the cryptocurrency. However, after reaching 6 month low On August 5, the BTC price was $49,000 and throughout the past week it has been fluctuating between $58,000 and $60,500.
However, the decline below the all-time high of $73.7k reached in March this year could be short-lived as growing evidence suggests the largest digital asset on the market is poised for a significant breakthrough.
Are we going to see Bitcoin grow by 2-3X?
Technical analyst Jamie Coutts has highlighted the “first bullish signal” for his “global composite liquidity model” from November 2023, which could lead to massive future gains for the market’s largest cryptocurrency.
In the recent social media post on X (formerly Twitter), Coutts noted that during a previous bullish signal, bitcoin price rose 75% from November 2023 to April 2024 before the trend reversed, with BTC down 25% from its all-time highs earlier this month.
Driving the bullish signal, Coutts said, is a surge in global liquidity, with the Bank of Japan and the People’s Bank of China adding $400 billion and $97 billion to their balance sheets, respectively, over the past month.
Coutts believes that, combined with the edged decline in the value of the US dollar, this coordinated central bank These actions, likely with the approval of the Federal Reserve (Fed), lay the groundwork for the next stage of Bitcoin’s growth.
“For BTC to achieve this goal, DXY needs to be well below 101, which is due to ongoing central bank injections. This would push global M2 well above $120 trillion this cycle,” Coutts predicted, estimating that Bitcoin could rise 2-3x from current levels.
Comparison of previous market cycles such as 2017, when BTC rose 19x and 6x, by 2020, Coutts says he estimates another 2-3x augment, which would be more than double the current peak of $73.7k, placing Bitcoin’s price with an outlook of $177k.
The Growing “HODL” Trend
Cryptocurrency analyst Ali Martinez is adding to the bullish sentiment noticed that Bitcoin investors are moving from distribution to accumulation.
Nearly 300,000 BTC have been added to long-term investments over the past three months, a sign of growing confidence among HODLers.
The largest cryptocurrency on the market is currently valued at $59,330, up just 0.6% in the past 24 hours after hitting a low of $57,700 on Thursday morning.
The question remains whether macroeconomic conditions will be the driving force behind the next price rally across the cryptocurrency market and whether BTC bulls will be able to capitalize on this development, attempt to break higher resistance levels and retest BTC’s major hurdle at $70,000.
Featured image from DALL-E, chart from TradingView.com
