Will the Bitcoin Price Finally Reach a New ATH?
Bitcoin (BTC) experienced a significant surge last week, fueling investor concerns about the end of the bull market. However, the flagship cryptocurrency started the new week with an increase of more than 2% over the past 24 hours, reaching up to $112,000.
Meanwhile, gold is once again capturing investor attention, reaching a new all-time high of $3,800 per ounce at the beginning of the week. Conditions currently appear optimal for the precious metal, which benefits from its safe-haven status.
Most importantly, throughout its history, Bitcoin has never broken below a buying Order Block on the 16-hour chart. Bitcoin has almost perfectly bounced off this block. However, a short-term drop cannot be ruled out, as this Block is located between $107,500 and $108,600. A return to this zone in the next 24 hours is still possible, and caution remains necessary.
Indeed, a CME GAP has formed down to $109,600, and numerous long positions have been added to the downside.
A Strong American Economy
Despite this volatility, the American economy remains in a very favorable position. The GDP for the second quarter reached 3.8%, exceeding initial expectations of 3.3%. Although a rate of 3.3% would have already been satisfactory, the final result proved even better.
This good news for the American economy is also positive for Bitcoin, as the United States constitutes a fundamental pillar of global financial markets. When the American economy is healthy, it generally has a favorable impact on the entire sector.
Moreover, forecasts indicate that GDP should continue its momentum in the third quarter, with growth estimated at 3.9% according to the GDPNow model from the Federal Reserve Bank of Atlanta. In this context, it may seem surprising that the central bank is considering rate cuts, as this measure is usually taken when the economy is experiencing difficulties and needs a boost.
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In conclusion, although the market experienced a period of volatility last week, the Bitcoin price seems to have begun an encouraging recovery. With a strong American economy and favorable growth prospects, crypto investors can hope that the Bitcoin bull run is not over. It remains to be seen whether the bulls will manage to propel the flagship cryptocurrency to new heights in the coming months.
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