Bitcoin has broken through long-term resistance in recent days and its price is currently around USD 64,000. The question is whether it will maintain this level or whether we will see a return to lower levels.
Current market developments
This week was full of significant events for bitcoin. On Monday, the price first returned to the level of Friday’s close on the Chicago Mercantile Exchange, but subsequent buying in Asian markets pushed the price above USD 60,000. Then, on Wednesday, the US non-farm payroll jobs were cut, which traders interpreted as a signal for a possible Fed interest rate cut. This led to a rise in the bitcoin price to US$62,000, but optimism later cooled.
Friday’s speech by Jerome Powell at a symposium in Jackson Hole helped bitcoin break through long-term resistance and approach USD 65,000. However, this rise was more a reaction to emotion than to actual changes in the market.
The outlook for the future
Next week will be crucial for the further development of the bitcoin price. If the price stays above USD 62,000, further growth towards USD 66,000 could follow. Monday’s opening of the US and Asian exchanges will play a big role, which may provide clues for the market’s future direction.
The behaviour of bitcoin spot ETFs, which have been buying heavily in recent days, will also be an important factor. If this trend continues, it may boost investor confidence and encourage further growth. On the other hand, negative news from the macroeconomic sphere could cause the price to revert back to levels around USD 62,000.
