The price of bitcoin has started picking up momentum towards the $10,500 as the Federal Reserve confirms monetary easing.
As of around 06:45 UTC, the BTC-to-dollar exchange rate was trading at $10,527, up 5.63 percent on a 24-hour adjusted timeframe, according to CoinStats’ crypto portfolio management app.
The pair’s upside also influenced the rest of the top cryptocurrencies. Ethereum, for instance, returned 3.35 percent gains in the last 24 hours. At the same time, Litecoin nervously surged by 2 percent ahead of its August 5’s halving event.
Crypto asset research firm Delphi Digital believes bitcoin in on its way of price explosion. In its latest report, the New York company said factors such as the recent Fed rate cut and a potential global economic downturn pushed the bitcoin-is-digital gold narrative. Excerpts from the study:
“First, and arguably most important, sentiment from global central banks took a drastic turn towards more dovish monetary policies,” says the report. “The Fed, ECB, BOJ, PBOC, and many others are now preparing market participants for more rate cuts and additional stimulus measures as they attempt to keep the current economic expansion going.”
Nevertheless, the cryptocurrency has not faced a global recession before, which makes even Delphi Digital uncertain about its future price action.
As predicted, bitcoin not only jumped from an ascending trendline support, but also validated its Falling Wedge scenario. Such a pattern is typically bullish for the underlying asset.
Bitcoin has broken out of the Wedge with a moderate rise in volume. That indicates a breakout, however weak. One could expect the price to retest the $11,042 level in coming times if it breaks above the blue curve, as shown in the chart above.
On the flip side, bitcoin could close below $10,248 to reclaim its interim bearish bias. In such a case, the price could target its July low of $9,108.