The Bitcoin fear and greed index rallied to 74 on Monday as the underlying value spiked above $69k for the first time since early June.
Bitcoin (BTC) price closed last week in a dragonfly Doji candlestick signaling waning bullish sentiment after a notable rebound in the prior weeks. However, the flagship coin continued with the recent bullish outlook on Monday following the spectacular pro-crypto rally held by the Republican presidential candidate Donald Trump over the weekend. According to the latest crypto oracles, Bitcoin price reached a daily high of about $69,711, signaling a potential bullish breakout to a new all-time high.
Furthermore, Bitcoin price has consistently closed above the 50 and 200 daily Moving Averages (MAs) in the past few weeks. Consequently, Bitcoin price is aiming to retest the resistance range between $70K and $73K after consolidating in the past.
From a technical standpoint, Bitcoin price is aiming for a new all-time high in the near term if it consistently closes above $72K. However, a potential reversal could send Bitcoin price toward the established support level of around $61K before rebounding to the ATH. The latter is bolstered by the narrative that Bitcoin price has historically turned bearish in August after a bullish July.
Rising Bitcoin Demand
For the first time since April 2021, Bitcoin dominance had a weekly close above 56 percent. The poor performance of the recently approved spot Ethereum ETFs in the United States has given Bitcoin a significant boost.
According to the latest market data, the US-based spot Bitcoin ETTs have registered net cash inflows of nearly $3 billion in the past four weeks. On the other hand, the US-based spot Ether ETFs registered a net cash outflow of about $341 million since the official launch.
The Grayscale’s ETHE, with net assets under management of about $7.11 billion, is expected to continue bleeding due to its high sponsor fee in the coming months.
Meanwhile, on-chain data shows that institutional investors are heavily accumulating Bitcoin in preparation for further growth. Moreover, all indicators point to an inevitable bullish breakout, with some analysts predicting a parabolic rally during the fourth quarter.
Economic Outlook
Bitcoin has grown to a major trading instrument already threatening gold and the US dollar as the global reserve currency. Consequently, more nation-states are expected to adopt Bitcoin as a long-term insurance policy.
In the United States, both sides of the political spectrum have shown great affinity for the crypto community, believed to represent more than 50 million voters. In response to Trump’s comments over the weekend, several Democratic candidates wrote to the DNC asking the party to shift away from the anti-Bitcoin stance.
Meanwhile, the US Federal Reserve will release the highly anticipated interest rate data later this week. According to CME data, there is a 96 percent chance that the US Fed will keep the interest rate unchanged. However, there is an 86 percent chance that the Fed will initiate a 25 bps interest rate cut on September 18.
next