Bitcoin is on the rise again, with the price nearing the $117,000 mark as traders brace for potential market shifts. As of Wednesday, the leading cryptocurrency has reached local highs of $116,593 on Bitstamp, buoying bullish sentiment ahead of the Wall Street opening.
Despite facing concerns over liquidity below current prices, Bitcoin’s upward momentum appears resilient. With September finishing with a solid gain of 5.2% and Q3 reflecting a 6.3% increase, analysts are turning their attention to what could become a new all-time high (ATH) for BTC. Notable crypto analyst and entrepreneur, Ted Pillows, indicated that the next significant resistance level lies around $117,500, emphasizing that if Bitcoin can reclaim this threshold, a rally towards a new ATH is likely.
However, market conditions surrounding liquidity continue to raise alarms. Trading insights from the platform TheKingfisher recently warned of possible long liquidations just below Bitcoin’s current price. This development suggests a scenario where the price might dip sharply before any further gains, leading to potential trigger points that could influence market behavior significantly. As highlighted, order-book liquidity frequently results in deceptive price movements, allowing large-scale traders to exploit less experienced participants.
Current data shows that short liquidations across the cryptocurrency space have reached $400 million in the last 24 hours, underscoring the volatile and speculative nature of the market.
In a surprising parallel, Bitcoin’s ascent coincides with gold hitting unprecedented levels. The precious metal recently reached a historic price of $3,895 per ounce, further igniting discussions among traders of the long-anticipated correlation between Bitcoin and gold. Many have speculated that Bitcoin needed to emulate gold’s performance, and with the latest uptick, a turnaround may be underway, particularly considering a prior estimate indicated an eight-week delay in this potential replication.
Popular trader HTL-NL highlighted on social media a chart showing Bitcoin priced against gold, attempting to break through crucial long-term resistance levels. This development could signify a potential shift in market dynamics as investors track Bitcoin’s progress against the backdrop of gold’s ongoing rally.
Nevertheless, some experts, like Andre Dragosch, the European head of research at Bitwise, suggest that gold’s current rally may be losing its momentum. Dragosch noted potential over-exuberance within the gold market, hinting at the possibility of a “risk-on” rally which may influence a rotation back towards Bitcoin and other high-risk assets.
Overall, as Bitcoin navigates through these pivotal moments, the interplay with gold’s record performance reveals emerging trends that could shape the evolving cryptocurrency landscape. Traders and investors alike remain keenly observant of BTC’s movements, especially as it approaches critical price milestones.
This article is for informational purposes only and does not constitute investment advice. Every investment carries risks, and readers should conduct thorough research prior to making any financial decisions.
