DailyCoin Bitcoin Regular: BTC Soars 3.6% Overnight, Is the Bull Back On?
Despite no big headlines, Bitcoin has neared critical $59,500 resistance.
Bitcoin has reached a “make-or-break” point; investors have faced losses.
Low liquidations and better macro trends have offered optimism.
While Bitcoin hasn’t made headlines with any major developments lately, the cryptocurrency has seen some interesting movement in its price chart. Subtle shifts in market sentiment and investor behavior contribute to these changes, keeping traders and enthusiasts closely watching for potential breakout moments. Sponsored
In this edition of the Bi-Weekly DailyCoin Bitcoin Regular, our expert Kyle Calvert, breaks down the latest developments, from recent price action to key forecasts. We’ll explore the tug-of-war between bulls and bears and what it could mean for Bitcoin in the weeks ahead.
Table of ContentsNews and EventsEl Salvador’s Bitcoin Journey Hits 3-Year Mark with $31M in GainsJapan’s Tepco Powers Up Green Bitcoin Mining EffortCoinbase Unveils ‘cbBTC’: A Wrapped Bitcoin InnovationExperts Forecast and Current OutlookWhat Does It All Mean?On the FlipsideWhy This Matters
News and Events
El Salvador’s Bitcoin Journey Hits 3-Year Mark with $31M in Gains
El Salvador celebrates three years since adopting Bitcoin as a legal tender. Despite early criticism, the country has profited over $31 million from its Bitcoin investments. President Nayib Bukele’s bold move positioned El Salvador as a digital asset pioneer, though larger economies remain hesitant to follow suit.
Tokyo Electric Power Company’s subsidiary, Agile Energy X, is exploring Bitcoin mining using excess renewable energy from solar farms. By utilizing wasted power, the firm aims to promote green energy adoption. If successful, they estimate mining could generate $2.5 billion annually, boosting profits and reducing energy waste.
Coinbase Unveils ‘cbBTC’: A Wrapped Bitcoin Innovation
Coinbase has launched cbBTC, a wrapped version of Bitcoin, on Ethereum and its layer-2 network, Base. cbBTC is backed 1:1 by Bitcoin held at Coinbase, enabling users to engage with DeFi applications. It’s supported by platforms like Aave and Compound, and it is planned to expand to other blockchain networks.
Experts Forecast and Current Outlook
Bitcoin’s price shot up 2.15% on September 12, reaching a high of $58,560 before cooling off to $58,069. That’s a solid 3.6% gain in just 24 hours, all thanks to fresh U.S. economic data. But don’t get too comfortable—there’s tension in the air.
The bump came after the latest Producer Price Index (PPI) data showed a 0.3% rise, slightly above what experts expected. Unemployment claims also surged, raising questions about what the Federal Reserve will do next. Traders are now betting on a 0.25% interest rate cut, fueling Bitcoin’s rise. To top it off, nearly $20 million in short positions were wiped out, adding extra juice to the rally.
But here’s the catch: Bitcoin is flirting with a crucial resistance level at $59,500. If it can break through, it could be eyeing $68,250. If not, it’s heading into choppy waters.
ARK Invest’s latest report warns that Bitcoin is at a “make-or-break” moment. The cryptocurrency has struggled to stay above key support levels at $52,000 and $46,000. Worse still, institutional investors and U.S. Bitcoin ETF holders are sitting on unrealized losses.
Despite these red flags, there are some glimmers of hope. ARK points to low levels of short-term holder liquidations and decent macroeconomic conditions. Plus, Bitcoin’s MVRV Z-Score—a key metric for bull markets—remains positive.
What Does It All Mean?
Not got much time? No worries, here’s a quick breakdown of the events made simple:
Bitcoin’s Subtle Movements: While there haven’t been any major developments, Bitcoin’s price has seen interesting shifts due to changes in market sentiment and investor behavior. Traders are closely watching for a potential breakout.
Economic Data Boosts Bitcoin: On September 12, Bitcoin’s price jumped 2.15% to $58,560, driven by U.S. economic data, including a rise in the Producer Price Index and higher unemployment claims. This has led traders to speculate about a potential 0.25% interest rate cut by the Federal Reserve.
Key Resistance Levels: Bitcoin is facing a key resistance level at $59,500. If it can break through, it could reach $68,250, but failing to do so may lead to market volatility.
ARK Invest’s Outlook: ARK Invest warns that Bitcoin is at a critical moment, struggling to hold support levels at $52,000 and $46,000. Institutional investors and Bitcoin ETF holders are facing unrealized losses.
Silver Linings: Despite challenges, there’s hope. Short-term holder liquidations remain low, macroeconomic conditions are improving, and Bitcoin’s MVRV Z-Score—a key indicator of bull markets—remains positive.
On the Flipside
The liquidation of $20 million in short positions may indicate heightened market leverage, raising concerns about potential instability and sudden price reversals.
If the Federal Reserve does not implement the anticipated interest rate cut, Bitcoin could face downward pressure due to unmet market expectations.
Institutional investors sitting on unrealized losses might decide to offload their Bitcoin holdings, leading to increased selling pressure and possible price declines.
Why This Matters
Bitcoin’s recent price movements reflect subtle shifts in the broader market, offering insights into evolving economic conditions and investor behavior. These could influence not just Bitcoin but also set trends for the wider crypto landscape.