- Summary:
- Bitcoin price has built strong momentum this week, and a floundering US economy favours the crypto to rise to its digital gold moment.
Bitcoin price stayed above the critical psychological barrier at $65,500 on Friday, a level last seen in early August. The crypto market has largely tracked the mainstream financial markets in the second half of the year. However, a wobbling US economy, underpinned by a weak dollar has seen more investors rush to diversify their investment.
The Federal Reserve moved to stimulate the US economy through 50 bps cuts on September 18 and left the door open for additional cuts this year. However, the underlying message is that the US economy might have hit turbulence already, hence the need for deep cuts. That has necessitated portfolio diversification and a rush to safe-haven assets.
A case for digital gold
Gold prices have hit multiple ATHs this week, and silver prices have gained 2 percent in the last five sessions. The focus now shifts to US Personal Consumption Expenditure (PCE) data, which will be released on Friday. A lower-than-expected PCE could raise the prospect of another rate cut in October and favour Bitcoin’s price.
Bitcoin has for a long time been referred to as “the digital gold”, and it has lived up to that reputation. While the Bitcoin ETF approvals earlier in the year made Bitcoin closely intertwined with traditional financial markets, its gains this year exceed gold. BTC price has risen by 55 percent year-to-date, nearly double gold’s gains of 29 percent.
With 10 percent in gains on the monthly basis and 4 percent rise in the last week, the momentum surrounding gold favours further upside.
Bitcoin price today
Bitcoin price has pivoted around 65,380 and the RSI momentum indicator signals bullish control. The upward momentum will likely encounter the first resistance at 65,610. However, a stronger bullish momentum could break above that level to test 65,790.
On the other hand, moving below 65,380 could put the sellers in control. If that happens, the BTCUSD pair could find initial support at 65,140. However extended bearish control could breach that level to invalidate the upside narrative and potentially test 64,896.
