Bitcoin price rallies to $26,875 as bulls eye $27,500
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(Kitco News) - Crypto traders welcomed the second straight day of rising prices on Thursday as Bitcoin (BTC) and the broader market finally showed signs of life after a month of volatile but largely sideways price action.
Stocks also climbed higher after August retail sales data showed that the U.S. consumer remains resilient despite the Fed's aggressive interest rate hikes. Still, the month-over-month Producer Price Index (PPI) reading came in at 0.7%, showing inflation remains stubbornly persistent despite the Fed's efforts.
At the closing bell, the S&P, Dow, and Nasdaq all finished higher, up 0.84%, 0.96%, and 0.81%, respectively.
Data from TradingView shows that Bitcoin bulls extended the rally that began early on Wednesday for a second day, pushing the top crypto to a daily high of $26,875 in the afternoon before profit-taking led to a pullback to support at $26,600.
BTC/USD Chart by TradingView
The continued momentum resulted in “September Bitcoin futures prices [trading] higher again on a good rebound after hitting a six-month low Monday,” according to Kitco senior technical analyst Jim Wyckoff.
Bitcoin futures 1-day chart. Source: Kitco
“The BTC bulls have stabilized prices and are now making some progress,” Wyckoff said. “More good gains in the near term would suggest a near-term market bottom is in place.”
While BTC is starting to show signs of life, Bloomberg Intelligence crypto market analyst Jamie Coutts said their “trend model is still out of the market (negative) from $29,500.”
XBT/USD. Source: Twitter
According to Coutts, “global liquidity contraction (M2 & CB Bal Sheets) has slowed, but is still deeply negative. Until this reverses, Bitcoin is unlikely to go higher. Likely lower.”
Global money supply and central bank aggregate. Source: Twitter
Market analyst Rekt Capital posted the following chart showing a potential price path for Bitcoin should this recent rally fizzle out, as Coutts suggested.
BTC/USD 1-week chart. Source: Twitter
“As long as $26k holds as support, Phase A-B of the fractal could be in play,” Rekt Capital said. “But we've seen this fractal occur in 2019 and 2021 as well. A relief rally followed by rejection could reveal weakening support at $26k.”
Market analyst Crypto Tony said his target for the current pump is $27,500.
$BTC / $USD - Update— Crypto Tony (@CryptoTony__) September 14, 2023
Reclaiming the $26,600 level as we speak, so i waiting for the daily close before i look to long while we hold above this level. $27,500 is my target on this pump if we hold this level .. pic.twitter.com/8gwEha1l5s
Altcoins benefit from Bitcoin's momentum
Roughly two dozen tokens in the top 200 recorded losses on Thursday, while the rest climbed higher as the extended momentum for Bitcoin helped boost trading activity in the altcoin market.
Daily cryptocurrency market performance. Source: Coin360
HiFi Finance (HIFI) led the gainers with an increase of 43.5% to trade at $1.09, followed by a 13.16% gain for UniBot (UNIBOT) and a 10% increase for Axie Infinity (AXS). Galxe (GAL), Astar (ASTR), and TomoChain (TOMO) were the biggest losers after declining 3.6%.
The overall cryptocurrency market cap now stands at $1.06 trillion, and Bitcoin’s dominance rate is 49.2%.