Bitcoin (BTC) hit a weekly high on August 20. The break above $61,000 has raised expectations for a BTC price recovery.
Macroeconomic climate could give Bitcoin a new “push”
According to data from Cointelegraph Markets Pro and TradingView, Bitstamp’s local high was $61,424, with BTC/USD up 2.4% on the day.
Bitcoin was in sharp contrast to its weekly opening price, and commentators analyzing the broader macro picture were bullish.
In its latest market bulletin sent to its Telegram channel subscribers, trading firm QCP Capital noted that “re-leveraging” among stock traders is one factor fueling the stock rally.
“Corporate stock purchases have surged to $1.15 trillion this year, with Goldman Sachs’ trading arm seeing record client demand for the downside,” it reported.
Cointelegraph previously pointed out that there is no correlation between cryptocurrencies and stocks, while gold hit an all-time high last week.
QCP suggested that “risk sentiment could extend to crypto and gold, which could push BTC higher given the strong demand for upside calls.”
Additional clues about the pace of U.S. monetary policy easing are expected at the Federal Reserve’s annual symposium in Jackson Hole this weekend.
Comparisons circulating on social media have shown that the S&P 500 in particular tends to rise following Jackson Hole events.
BTC price range dominates
Turning to Bitcoin itself, the mood is cautious, with the price still stuck in a downtrend and unable to break through the key resistance level near $70,000.
Related: 3 Reasons Why Bitcoin Won’t Be ‘Boring’ in September
Popular trader Mark Cullen summarized, “Bitcoin broke above the 59.5k level overnight, expanding liquidity above the weekend high and reaching the upper trend line,” along with a chart showing various range elements.
“Can $BTC hold 60K now and find liquidity above the lower bound in the mid-60K range from the early August highs?”
Trader and analyst Rekt Capital is concerned that similar price moves are continuing after the March all-time high.
“History repeats itself,” he wrote of this range.
“Bitcoin is now trying to reclaim the channel bottom as support. A weekly candle close above the channel bottom would be bullish.”
Meanwhile, Credible Crypto was one of the companies that expected the price to move sideways in the short term.
“In that case, I expect the green zone to hold for now, but it may take some more time for this range to unfold simultaneously,” he wrote in part of his latest X content, adding that the chart shows support at $56,000.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.