Bitcoin Struggles at $64K, but Bullish Sentiment Grows Amid Positive Market Indicators
Bitcoin (BTC) continues to grapple with the $64,000 resistance level, trading up 0.3% at $63,850 on Wednesday. Despite the short-term challenge, market experts are pointing to a growing sense of optimism and potential catalysts that could propel Bitcoin to new heights.
Analysts note that while BTC has yet to break decisively above $64,000, several encouraging signals suggest the cryptocurrency may be poised for its next upward move.
In contrast, Ethereum (ETH) has slipped 1%, currently trading at $2,625, according to CoinGecko data.
U.S. Bitcoin and Ethereum ETFs See Strong Inflows
U.S. spot Bitcoin ETFs continue to show strength, marking their fourth consecutive day of net inflows. On September 24, these ETFs saw a total net inflow of $136 million, led by BlackRock’s iShares Bitcoin Trust (IBIT), which accounted for $98.8 million. Ethereum spot ETFs also performed well, attracting a total net inflow of $62.5 million, largely driven by BlackRock’s ETHA, which saw $59.2 million in deposits, according to SoSo Value.
Standard Chartered’s Positive Outlook on Bitcoin
Geoffrey Kendrick, Global Head of Digital Assets Research at Standard Chartered, remains optimistic about Bitcoin’s prospects. In a note sent to Decrypt, Kendrick cited last week’s FOMC decision and the steepening of the U.S. Treasury yield curve as supportive factors for Bitcoin. He highlighted the yield curve spread, now at +21 basis points, where the 10-year U.S. Treasury bond yields 0.21% more than the 2-year bond—a sign of optimism for future economic growth, which could boost Bitcoin prices.
“This rapid pace of accumulation suggests more than just higher prices—there’s a belief that broader market conditions are favoring Bitcoin, especially after VP Harris’ comments encouraging the crypto industry,” Kendrick stated.
Bitcoin Sentiment Surges as Market Optimism Grows
According to data from AltIndex, sentiment around Bitcoin has surged to 83 on a scale of 0 to 100, marking a notable shift from weeks of neutral outlooks. The uptick in positive sentiment has fueled speculation that Bitcoin may soon break through its current resistance.
“Google search trends for Bitcoin are starting to rise, indicating growing interest in the cryptocurrency. This uptick in searches could be an early indicator of a new bull cycle,” Kendrick added.
Market Momentum Needed for Breakthrough, Says Industry Expert
Avinash Shekhar, Co-founder and CEO of crypto derivatives firm Pi42, told Decrypt that Bitcoin requires additional market momentum to break through the $65,000 barrier. He also noted that while Ethereum is showing bullish potential, traders are wary of a potential bearish dip to $2,500.
“China’s recent rate cuts are also fueling bullish momentum in the crypto market,” Shekhar explained, though he cautioned that resistance levels and a slowing market could pose challenges.
“Investors are optimistic about market growth, targeting $65,000 for Bitcoin, $2,700 for Ethereum, and $650 for Binance Coin (BNB). This bullish trend could attract new investors or traders,” Shekhar concluded.