Bitcoin (BTC) is showing strong signs of an imminent price surge, according to top market analysts, who point to a confluence of bullish factors in the cryptocurrency’s favor. However, after hitting a 6-month low of $49,000 on August 5, BTC has hovered between $58,000 and $60,500 for the past week.
However, the dip below all-time highs of $73,7000 reached in March of this year may be short-lived, as evidence mounts that the market’s largest digital asset is poised for a major breakout.
2-3X Bitcoin Rally Ahead?
Technical analyst Jamie Coutts highlighted the “first bullish regime signal” for his “composite global liquidity momentum model” since November 2023, which could lead to massive gains ahead for the largest cryptocurrency on the market.
In a recent social media post on X (formerly Twitter), Coutts noted that during the previous bullish signal, Bitcoin rose 75% from November 2023 to April 2024 before the trend reversed, and BTC fell 25% from its all-time highs earlier this month.
According to Coutts, driving the Bullish signal is a surge in global liquidity, with the Bank of Japan and People’s Bank of China adding $400 billion and $97 billion to their balance sheets over the past month.
Coupled with a sharp decline in the US dollar, Coutts believes this coordinated central bank action, likely with the Federal Reserve’s (Fed) consent, is laying the groundwork for Bitcoin’s next leg up.
“For BTC to meet this target, the DXY must be well below 101, prompted by ongoing central bank injections. This would push global M2 well over $120T this cycle,” Coutts projected, estimating Bitcoin could rally 2-3x from current levels.
Comparing previous market cycles such as 2017, when BTC rallied 19x and 6x to 2020, Coutts claims that he estimates another 2-3 times increase, which would more than double the current high of $73,7000, positioning the Bitcoin price with an eye on the $177,000 mark.
Growing ‘HODL’ Trend
Adding to the Bullish sentiment, crypto analyst Ali Martinez has observed that Bitcoin investors shift from distribution to accumulation.
Over the past three months, nearly 300,000 BTC have been added to long-term holdings, a sign of growing conviction among HODLers.
Currently, the largest cryptocurrency on the market is trading at $59,330, up just 0.6% in the last 24 hours, after hitting a low of $57,700 early Thursday.
What remains to be seen is whether macroeconomic conditions will fuel another push higher for overall crypto market prices and whether BTC bulls can capitalize on this development, attempt to break above higher resistance levels, and retest BTC’s main obstacle at $70,000.
Featured image from DALL-E, chart from TradingView.com