Bitcoin Price Analysis: BTC Price Targets 70,000 as the Bulls Show Resilience

The Bitcoin price broke above the consolidation zone between $57,000 and $62,000 over the weekend, signaling an impending rally. Bitcoin price is in focus today despite the token’s fall of almost 1%, with the BTC/USD trading at $63,790. Meanwhile, its trading volume is up 13% to $21.91 billion, suggesting intense market activity. 

The current price movement can be linked to the Federal Reserve’s Chair, Jerome Powell’s Friday speech at the Jackson Hole meeting, which bolstered most markets, including crypto and stocks. The Fed argued that it intends to do everything to ensure a strong labor market and price stability. All eyes are now on the economic data in September, including August’s CPI and nonfarm payroll. This may help determine the magnitude of the rate cuts.

Bitcoin Statistical Data

Based on CoinmarketCap data:

• BTC price now – $63,790
• BTC market cap – $1.25 trillion
• BTC total supply –19.75 million
• BTC circulating supply – 19.75 million 
• BTC ranking – #1

Bitcoin Price Takes Down the $62,000 Resistance Zone

Bitcoin’s (BTC) price rejuvenated the uptrend and took down resistance at $62,000 and $64,000 to trade at $64,985 over the weekend. Meanwhile, BTC still trades within the confines of a rising parallel channel despite a slight plunge.

The bulls have flipped the 50-day and 200-day Simple Moving Averages (SMAs) into support at $61,421 and $61,615 respectively. Moreover, the Moving Averages are on the verge of making a golden cross. This will only manifest if the short-term (50-day) exceeds the long-term (200-day). A golden cross is interpreted as a bullish sentiment in the market once it occurs. 

On the other hand, the Relative Strength Index has its strength at 58. This suggests that the bulls control the market, reinforcing the bullish outlook. Moreover, increased buying pressure will cause the RSI to jump to the 70-overbought zone. 

Despite the bullish outlook, the Moving Average Convergence Divergence suggests a bearish outlook. This is manifested as the MACD indicator (blue) crossed below the orange signal line. This calls for a shift in the Bitcoin market from bullish to bearish. 

Is the $70,000 Mark Within the Reach?

In the 4-hour chart analysis above, both the bulls and the bears struggle to control the market. However, the SMAs and RSI indicators uphold a bullish outlook. If the bulls play their cards well, they could capitalize on the RSI, which calls for more traders to buy BTC. The BTC price could surge to around $67,500 in such a case. In a highly bullish case, the Bitcoin price could reclaim its ATH at $70,016 or even beyond. 

On the other hand, if the bears capitalize on the MACD indicators, which uphold a sell signal, the BTC price could plunge. The Bitcoin price could extend the fall if the $63,536 support level breaks. Only a break and close below $63,135 would spook investors in such a directional bias. In a dire case where the altcoin slides lower, a candlestick close below 61,611 would trigger panic selling. For the bullish thesis to be invalidated, the bears must bring the Bitcoin price below $60,247, which was last tested on August 22.

Bottom Line

Based on the BTC price outlook, traders must be cautiously bullish for potential delays at $64,000 or even $67,000. Until the Fed confirms the first rate cut, liquidity challenges could still plague global markets, including crypto.