(Kitco News) – Traders enjoyed a bullish end to the week as asset prices from stocks to gold and crypto recorded gains, with WTI oil the odd man out after falling 0.34% to trade at 75.59.
A mild uptick of 0.1% in the Producer Price Index (PPI) for September helped to assuage investor concerns about interest rates, leading to a decline in the odds that the Fed will hold rates steady at their meeting in November.
The CME FedWatch tool now puts the odds of a 25 bps rate cut at the next FOMC meeting at 90%, meaning expectations that the central bank would hold rates steady have fallen to 10%, down from 17% yesterday and 45% last month.
This helped motivate traders to reengage with the markets, leading to a positive week-ending close. When it was all said and done, the S&P, Dow, and Nasdaq all finished in the green, up 0.61%, 0.97%, and 0.33%, respectively.
Spot gold also trended higher, up 0.96% at the time of writing and trading at $2,655.20/oz.
Data provided by TradingView shows that after bouncing off a low of $58,865 on Thursday afternoon, Bitcoin (BTC) bulls went to work, pushing King Crypto through multiple resistance levels to a high of $63,425 on Friday afternoon.
BTC/USD Chart by TradingView
At the time of writing, Bitcoin trades at $63,004 for an increase of 5.79% on the 24-hour chart.
Bullish momentum building
“Hi, bulls. Nice of you to finally show up,” tweeted market analyst Justin Bennett. “Clear that $64k high, and we can start talking about sweeping those $70k shorts.”
“No early celebrations here,” he added. “That red box is technically still resistance, so getting bullish here makes zero sense.”
As the rally showed signs of staying power, Bennet said, “Clear $63-$64k, and we probably see #Bitcoin sweep shorts between $67k and $71k.”
DeFi researcher 0xNobler noted that Bitcoin “went parabolic every time the MA indicators crossed” and said, “Today, they’ve just crossed again.”
After Bitcoin fell below $60,000 for the first time since September 18 on Thursday, TradingView analyst TradingShot pushed back against calls for more downside, saying, “We highly doubt that as not only has the price formed the first Higher High on September 27 in 6 months, but more importantly, the uptrend since the August 05 bottom is supported by a Higher Lows trend-line.”
“Also, the 1D MA50 (blue trend-line) may have been broken, but as long as the price holds the 1W MA50 (red trend-line), which has held twice already on August 05 and September 06, the chances of a break-out above the 7-month Lower Highs trend-line are high,” he added.
“In fact, the pattern since the August 05 bottom appears to be an Inverse Head and Shoulders (IH&S),” TradingShot highlighted. “The standard technical target on such occasions is the 2.0 Fibonacci extension, which gives us a $80000 price tag. As long as the 1W MA50 holds, this is the most likely scenario, in our opinion.”
MN Consultancy founder Michaël van de Poppe said Bitcoin is primed to make a run at $65,000 resistance.
The trend has switched!
Despite the current sentiment, markets are already uptrending and I think that the acceleration is just around the corner for the whole market.#Bitcoin made a higher, higher low, and found support at $60K.
The next test at $65K, that's the one. pic.twitter.com/CaU3jrFeSW— Michaël van de Poppe (@CryptoMichNL) October 11, 2024
And Ryan Lee, Chief Analyst at Bitget Research, said, “Based on community discussions, there is a certain level of optimism about Bitcoin's trend, particularly with mentions of coin accumulation and expectations related to the U.S. presidential election. In the short term, although there may be fluctuations, the overall trend leans bullish. After key economic data releases, such as the CPI, market sentiment could become more positive.”
“If the U.S. election results in crypto-friendly policies, BTC could receive a boost,” he added. “Given its leading position in the market, Bitcoin is expected to remain stable or rise, especially if supported by favorable policies or events.”
Lee said Bitcoin will “likely remain stable or slightly increase by the end of the year, with a price range of $50,000 to $80,000 by year-end. In Q1 of 2025, the price could fluctuate widely between $45,000 and $90,000.”
Legendary trader Peter Brandt offered a word of caution to overly optimistic bulls, however, noting that when Bitcoin has gone this long without setting a new all-time high, a 75% price pullback has typically followed.
Hey Bitcoiners
Are you familiar with the concept of "market analogs?"
Here is something to think about
It has been 30 weeks since $BTC made an ATH
Whenever has not made a decisive new ATH within this time length a 75%+ decline has occurred pic.twitter.com/CUyK4C2W93— Peter Brandt (@PeterLBrandt) October 11, 2024
Altcoins firing on all cylinders
The sight of a rallying Bitcoin excited crypto traders, pushing them back into the altcoin market, as evidenced by the fact that only three tokens in the top 200 recorded losses on Friday.
Daily cryptocurrency market performance. Source: Coin360
Ethena (ENA) was the top gainer, increasing 24.7%, followed by gains of 22.6% and 21.7% for Mog Coin (MOG) and Axelar (AXL), respectively. Baby Doge Coin led the losers with a decline of 5%, while Uniswap (UNI) fell 2.4%, and MX Token dropped 0.4%.
The overall cryptocurrency market cap now stands at $2.19 trillion, and Bitcoin’s dominance rate is 56.8%.
