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ATH On The Horizon: Bitcoin Is Pushing Beyond $65,000 – Here’s Why

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Fed Rate Cut Decision to Drive Macroeconomic Volatility - Here's What to Know in Crypto This Week

Bitcoin is back in green after the worrying drop in early August.

Although there were losses early this month, which threatened to confirm the downtrend of June through early August, prices bounced strongly.

Bitcoin Recovers, Adds 30% After Early August Sell-off

The coin is now trading above $60,000, a psychological round number, but still trading below two key resistance levels, primarily at $65,000 and $70,000.

Notably, the expansion after the 5 August 2024 dip has seen the world’s most valuable coin add an impressive 30%.

Bitcoin is firm but below $65,000. Will bulls break this level? The approval of options trading for BlackRock's IBIT is massive

However, even as impressive as these gains are, traders are hungry and want more.

They are waiting for a refreshing breakthrough, which will come if there is a decisive, high volume close above the $66,000 mark.

If this happens, BTC will trend at a 2-month high.

For this breakout to print out, BTC must be supported by several factors.

What Will It Take For BTC To Float Above $66,000?

At the top of the list, experts think the growth of spot volumes across top exchanges like Binance, Coinbase, and Kraken could trigger demand, lift sentiment, and solidify the uptrend.

Before then, bulls need to, first of all, break $65,000.

A glance at the daily chart shows that this reaction line coincides with the August 2024 highs.

A lift-off above this line will require two things to happen.

First, an uptick in spot trading activity.

Second, an influx of open interest in leverage longs in perpetual trading markets like OKX, Bybit, and Binance.

Bitcoin is firm but below $65,000. Will bulls break this level? The approval of options trading for BlackRock's IBIT is massive

A combination of the two would be sufficient to push the coin above the resistance barriers at $66,000, $67,900, and eventually $70,000.

Since there is a sense of confidence among traders, BTC must first support at around $64,000 for buyers to stand a chance.

Once the breakout happens, confirming the gains of September 17, it is highly likely that BTC will fly in a buy trend continuation mirroring the sharp uptick of August 8.

The ground is also set, solid enough for buyers to anchor on.

EXPLORE: Is TIA Price About To Explode? Celestia Crypto Double-Down With $100M Capital Raise

United States SEC Approves Options Trading For BlackRock’s IBIT

Last week, the United States SEC approved BlackRock’s application to list and trade options for its spot Bitcoin ETF, IBIT.

Analysts said this decision is massive in several ways.

Admittedly, the injection of institutional liquidity after the approval of spot Bitcoin ETFs back in January is evident. Spot ETF issuers in the United States currently manage over $58 billion worth of BTC.

Bitcoin is firm but below $65,000. Will bulls break this level? The approval of options trading for BlackRock's IBIT is massive

With BlackRock now free to trade options of IBIT, experts expect more liquidity into the sphere, possibly boosting BTC prices.

Now options of spot Bitcoin ETFs are live, institutions have a channel to hedge their bets, which directly helps stabilize prices.

Another analyst is confident, saying BTC and crypto generally stand to thrive with options for trading spot ETFs that are now available.

In his view, the options market eases the ability of institutions to price the risk inherent in margin lending versus IBIT.

https://x.com/joshua_j_lim/status/1838292692649795823

Therefore, this will make it more likely for “prime brokers to lend against crypto,” accelerating the growth of altcoins.

Read more: Hamster Kombat Analysis: Is HMSTR Going To Be A $1Bn Meme Coin? 

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Dalmas is an experienced journalist with over a decade in crypto, technology, and blockchain. His work and that of his partners have been featured in top news outlets, including Forbes, investing.com, and Entrepreneur, among others. He is passionate about crypto and is always on the lookout for the latest trends in these fields. Connect with Dalmas on X @Dalmas_Ngetich

View all Posts by Dalmas Ngetich

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