- Bitcoin soared to US$64,040, a 5.8% increase, with Ethereum and Solana also making notable gains.
- Federal Reserve Chair Jerome Powell indicated forthcoming rate cuts, positively impacting market sentiment.
- Swissblock analysts suggest a potential shift towards an Altcoin Season, seeing reduced risk and bearish momentum.
- Benjamin Cowen noted Bitcoin’s position above the bull market support band, signalling bullish market conditions.
Bitcoin and associates had a good weekend with several major assets gaining ground. Bitcoin went from roughly US$60,800 (AU$89,482) on Friday to US$64,040 (AU$94,247) at the time of writing, an impressive 5.8% increase.
Overall, BTC has gained 10% in the past week – others like Ethereum and Solana also made solid gains with 5% and 11% in the past seven days respectively.
This comes after the chair of the US Federal Reserve, Jerome Powell, declared “time has come” for rate cuts. Speaking at Jackson Hole, Wyoming, Powell said September will be the first time since 2020 that the Fed cuts down interest rates.
Related: Aussie Analyst Jason Pizzino Says Recession Fears Overblown, BTC to Break Out
While he wasn’t specific if the US would see a cut of 25 or 50 basis points, he was optimistic about inflation while cautioning about rising unemployment.
Amid this, analysts at Swissblock say their outlook has shifted “closer to Altcoin Season, the Bitcoin Risk Signal dropped back into low-risk territory, and bearish momentum eased”.
The Swissblock Speedometers show that risk levels are dropping off as on-chain fundamentals remain firmly in the neutral zone.
Bull Market Back in Full Swing Soon?
Overall, the analysts are cautiously optimistic about the potential for sustainable growth in the network. There’s a positive view as the network’s growth resumes its upward course, challenging previous highs and reversing a post-halving downturn.
While liquidity is recovering, although slowly, there is a need for a more robust movement like in late July to fully confirm the upward trend, the analysts wrote.
What we need to see is not only an indication of an upward trend, but also a strong movement, similar to what we observed in the second half of July. Keep in mind, that we see more price impact in the short term based on the network growth reading versus the network liquidity reading.
Swissblock Related: Scaramucci: Wild Times Ahead Once Wall Street “Selling Machine” Starts Pushing Bitcoin
And Bitcoin analyst Benjamin Cowen went to X (formerly Twitter), to proclaim that BTC closed just above its “bull market support band”. This typically consists of a combination of moving averages or other technical indicators that traders use to determine potential support levels during a bull market.
The support band acts as a price level where Bitcoin might find support during declines, suggesting that it could bounce back up from this level. Staying above the support band is generally seen as a bullish signal, suggesting that the price might continue to rise or at least maintain its current level.
Source:
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