Analysis: Bitcoin Price Breakout Expected in Q4
As the cryptocurrency market stabilizes following a turbulent period, a new analysis warns against anticipating a significant breakout in the price of Bitcoin until the last quarter of the year. Singapore-based digital asset firm QCP Capital believes that the market may remain in a holding pattern for the foreseeable future, even as some encouraging signs emerge.
Bitcoin Stable at $60,000
Bitcoin’s recent recovery to reclaim the $60,000 mark suggests that BTC has stabilized after last week’s sell-off. Despite BitGo moving $2 billion worth of Mt. Gox BTC, the market seems to be shrugging off the potential supply impact of these transactions.
Ethereum Shows Positive Movement
Ethereum (ETH) has also seen positive movement, with spot ETFs experiencing a two-day winning streak and attracting $24.3 million in net inflows on Tuesday. This positive development comes as market expectations shift towards a 50 basis point rate cut by the Federal Reserve in September, driven by a softer U.S. Producer Price Index (PPI) report.
Limited Major Breakouts Expected
- QCP Capital notes that while the current environment appears supportive, major catalysts necessary for a breakout are lacking.
- The firm emphasized that with no major catalysts on the horizon, limited major breakouts are anticipated until Q4.
Institutional Capital Re-Entering the Market
A separate report from 10x Research highlighted the importance of stablecoin inflows in sustaining any significant rally. The recent minting of $1 billion in USDT by Tether, along with a $2.8 billion issuance by Tether and Circle, signals that institutional capital is gradually re-entering the market.
Bitcoin Needs More Support
- 10x Research emphasized that for Bitcoin to move substantially above the $60,000 to $61,000 resistance zone, more support is required.
- A strong stablecoin inflow is deemed essential to make the breakout sustainable, as other factors like the expansion of futures and derivatives leverage are now having less impact.
Hot Take: Wait for Q4 for Potential Bitcoin Price Breakout
For now, it seems that the cryptocurrency market, particularly Bitcoin, is in a consolidation phase with limited major breakouts expected until the last quarter of the year. Keep an eye on the market developments and be prepared for potential price movements as we approach Q4.
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