Bitcoin has since gained over 10% in the last 24 hours. It started trading at $55,132 and surged, following a slight decline below $55k. The asset soon rebounded and is exchanging at $61k at the time of writing.
The coin returns to this level after over three days of absence. It also marked the asset’s breakout above the $58k resistance.
The massive surge has since piqued investors’ interest as they examine whether it is sustainable and the driving force behind the hike.
Bitcoin Sees Positive Fundamentals
The apex coin started seeing a change in narratives over the last 24 hours. It had suffered from massive bearish fundamentals that proved detrimental to it in the previous seven days. A change type of news that made the rounds is also positively affecting.
One such is the release of the United States labor market stats on August 5. It showed the number of jobless claims at 233,000 between July 28 and August 3. The latest valuation is in contrast to what economists previously asserted.
They forecasted an even greater number than the recent value. These labor market observers expected higher than 250,000 claims, which may indicate an impending recession. The general market outlook is positive, as the figure came out lower, and the fears of recession are almost non-existent.
Expectations of a rate cut by the Federal Reserve may happen in September. The most recent surge is in anticipation of this cut. Nonetheless, US investors are gradually regaining confidence in the market.
An attestment to the resurging confidence is evident in traditional stocks. For example, the S&P500 is up by almost 3% in the last 24 hours. The NASDAQ 100 is also up by 3 as buyback continues. Considering the price correlation, these moves may also be responsible for the latest surge.
It is also worth noting that Russia recently announced the legalization of Bitcoin and Bitcoin mining. Although this latest move is in response to sanctions leveled against it, it spells goodwill for BTC.
BTC Started a Bullish Convergence
The Bitcoin price surge is reflected in indicators. For example, the moving average convergence divergence is currently printing a buy signal. The 12-day EMA halted its downtrend a few days ago and is on the rise as prices flip key levels.
A close look at MACD shows the 26-day EMA is still on the decline. With both EMAs seeing opposing trajectories, a bullish convergence is ongoing. Such interception indicates the continuation of the positive trend.
Elendu Benedict | September 4, 2024
