Bitcoin (BTC) is flat when writing,
Price
Trading volume in 24h
Last 7d price movement
, but this state of affairs is not surprising.
There were gains on August 23 when prices broke higher before prices consolidated until today.
This price action was precisely seen after the August 8 bar when prices also moved sideways for nearly two weeks before the recent uptick.
Generally, traders are upbeat about what lies ahead, banking on fundamental and technical factors.
Bitcoin Price Flat After Breakout
As it is, Bitcoin has support at the $63,000 level.
The breakout on August 23 pushed the coin above the tight range and the bull flag, confirming the conspicuous bull bar of August 8.
Since the trading volume accompanying this leg-up was also high, there is more room for growth in the short to medium term.
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Any breakout above the August 23 high and $65,000 would be the building block for another uptick, ideally to $72,000 or June and July highs.
The confidence that bulls will push on stems from multiple factors.
STHs Are In Green
Taking to X, one analyst, citing on-chain data, said the short-term holder (STH) realized that BTC prices are back above the moving average.
The expansion on August 23 confirms the presence of bulls.
(Source)
It also means traders who bought BTC within the last 155 days are in green territory.
The more profitable holders are, the higher the chances that they will consider holding, not liquidating, the token.
Bitcoin Price Dominates
As STHs celebrate, Bitcoin continues to gnaw more market share, dominating the scene.
CoinMarketCap data shows that Bitcoin has a market share of 56.1%, up from roughly 55% in the past few days.
(Source)
As Bitcoin dominates, it means more capital is flowing to the coin, not altcoins, suggesting that altcoins will continue suffering until after there is full confidence that the whole crypto scene, not just Bitcoin, has turned the corner.
In that case, DeFi and even meme coins will also see more inflows, rapidly boosting their valuation and pushing Bitcoin’s dominance lower.
Confidence is high that BTC will likely swell in late Q3 and throughout Q4 2024.
The Gold Standard: BTC As An Inflation Hedge?
The United States Federal Reserve is set to slash interest rates amid falling inflation.
However, in an accommodative environment, inflation will increase. To preserve wealth, investors will use Bitcoin to hedge, benefiting prices and possibly pushing the coin to new levels.
This formation was seen from 2020 through 2021, when governments worldwide slashed interest rates to mitigate COVID-19 risks. Bitcoin prices soared from below $10,000 to nearly $60,000 by November 2021.
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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.
