Bitcoin has shown a significant recovery this weekend, and now analysts believe that BTC is to continue rallying, heading all the way towards $100,000.
Ethereum and other cryptocurrencies have also printed a nice surge, while an important event for the crypto market is widely expected to happen next week.
Bitcoin recovers $60,000 after MicroStrategy’s huge BTC purchase
The world’s largest cryptocurrency has shown a roller-coaster recently as it managed to reclaim the $60,000 level. This Bitcoin rally came within the broader rally in the traditional financial markets, indicating potential recovery of the digital asset market that has again emerged on the horizon.
The community has always spoken about $100,000 as the milestone Bitcoin is to reach in the near future – that was what the “laser eyes” frenzy was about four years ago, when Bitcoiners on Twitter added those “laser eyes” to their social media avatars. Finally, recent developments in both crypto and traditional markets have fueled these discussions again, creating all the prerequisites for BTC to finally reach that historic price peak.
Last week on Friday, Bitcoin briefly shed 1%, sliding back to $57,600 after the business intelligence software company MicroStrategy announced an acquisition of 18,300 Bitcoins for a mind-boggling $1.1 billion. The company now holds a cumulative of 244,800 Bitcoins worth roughly $14 billion.
MicroStrategy’s share price jumped by 24% weekly and 124% this week. This massive purchase sent waves across the financial markets, including the Bitcoin market. The second largest crypto Ethereum also went up, regaining $2,400, rising 2.7%, following Bitcoin’s rise. Last week prior to that, Ethereum’s transaction fees saw an increase of almost 60%, which indicated an increase in the blockchain activity as the markets again began to rally. This Ethereum gas fee rise also signifies a growing demand for decentralized financial services.
Other top altcoins, such as Polygon’s POL token, also went up, demonstrating a substantial increase across the whole crypto market. Besides, Binance launching spot and perpetual trading of this token also contributed to the POL’s price rise.
Looking at financial markets at a broader angle, one can see that the S&P 500 industrial index is approaching its July record price high. This increase has created positive conditions for forming a risk-on environment and investors now are in the stage where they are prepared to take risks looking for higher returns. This often benefits volatile assets like digital currencies, and Bitcoin in particular. Gold has also increased significantly, reaching a record high of $2,600 this year for the first time ever. This gold price surge is down to the growing concerns about inflation increase and US dollar devaluation feared by many in the near future.
Bitcoin mulls rising to $100,000, per analysts
Another important factor for further Bitcoin price surge expected by the crypto community is the FOMC meeting scheduled for next Wednesday. An interest rate cut is expected to follow. However, crypto experts’ opinions differ widely as to how big this cut is going to constitute. Some believe it would be 25 basis points, while others bet on 50 basis points. That would be the first Fed Reserve’s rate cut in the last four years.
Among the analysts who are predicting a possible continuation of the Bitcoin rally is Bob Loukas. He published a BTC chart to prove his point, referring to Bitcoin cycles. The cycles theory in Bitcoin technical analysis insists that BTC price moves in waves and there are certain periods between local surges and crashes.
This chart shows that on September 6, Bitcoin dived to the $53,000 bottom. That was only the 7th day of the freshly started 62-day Bitcoin cycle. The previous Bitcoin cycle lasted more than two months (60 days) and the price reached the top on the 24th day, which left enough time for Bitcoin to reach new peaks before going back down. Lukas’s chart indicates that Bitcoin is likely to skyrocket as high as $64,000.
Meanwhile, another popular cryptocurrency trader and analyst, known as Titan of Crypto on X (formerly Twitter), expects Bitcoin to spike towards the $92,000 level. In his X post, he wrote that during previous cycles, when BTC price retested the 50-week simple MA (moving average), Bitcoin rebounded at least 40%, while on average those bounces comprised 71%. Thus, should Bitcoin bounce 71% from its current $60,000 price level, it has high odds of soaring to $92,000.
While the US national debt continues to grow fast and monthly interest payouts on it have already reached $1 trillion, many experts believe that in the current market conditions, Bitcoin is likely to reach $100,000 fairly soon and perhaps even go way beyond that level.
