Bitcoin Price Forecast – Bullish Flag Points to New Record Highs

Bitcoin has been trading on a descending channel since April when it placed a record high above $70K, but we might see a new ATH in BTC price soon. Sellers have tested the 50 SMA twice on the daily chart, but that moving average has held as support, so Bitcoin has bounced off of it and climbed above $60,000 yesterday.

After surging from over $20,000 in October 2023 to more than $70,000 by April, Bitcoin has been trading in a downtrend, characterized by lower highs and lower lows. In early August, fears of a U.S. recession triggered a broad market sell-off, driving Bitcoin’s price below $50,000. Despite this, the 50-day Simple Moving Average (SMA) provided crucial support during the recent declines, successfully holding the line both last week and in earlier sessions. Buyers have now stepped in to halt the downward momentum, and Bitcoin is once again testing former support levels from below.

With a recovery in risk sentiment across financial markets, bullish momentum has picked up. Yesterday’s improvement in investor confidence, buoyed by a rebound in stock indices such as the S&P 500, has helped accelerate Bitcoin’s upward movement. As traditional markets attempt to reverse last week’s losses, there is renewed optimism that Bitcoin could regain its footing and push higher if broader market conditions continue to stabilize. However, market volatility remains high, and further price action will likely depend on macroeconomic developments and the strength of the overall risk appetite.

Bitcoin Chart Weekly – The 50 SMA Held As Support Again

Bitcoin’s Bullish Momentum and Risk Perception

The recent surge in bullish sentiment surrounding Bitcoin aligns with improving risk perception, which has also boosted stock markets and the broader cryptocurrency market. Following the release of August’s U.S. Producer Price Index (PPI) and Consumer Price Index (CPI) figures last week, markets are leaning toward a 50 basis point rate cut by the Federal Reserve at this week’s FOMC meeting. The headline inflation figures showed a downward trend, supporting risk assets like Bitcoin, even though core inflation came in slightly above expectations. Historically, October and November are strong months for Bitcoin, often leading to significant price rallies, so many traders expect further gains in this cryptocurrency.

Anticipation of Bitcoin’s Halving and Future Projections

Additionally, the upcoming Bitcoin halving event is expected to have a major impact on the market. Historically, prolonged bull runs have followed previous halving cycles, driving significant price increases. In light of this, combined with technical analysis patterns like the bullseye flag, some analysts are forecasting potential price targets as high as $100,000 by next year. The halving, which reduces the reward for mining new blocks, typically fuels supply constraints, further supporting price growth during bullish periods.

Bitcoin Live Chart