Bitcoin, gold on track to break out as ‘macro summer’ begins — Analyst

Zoltan Vardai11 hours agoBitcoin, gold on track to break out as ‘macro summer’ begins — AnalystThe beginning of the “macro summer” rally could help Bitcoin price reach a new all-time high and rally well into 2025, according to Raoul Pal.2773 Total views4 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin and gold could be on track to a significant price breakout as macroeconomic conditions improve.

The beginning of “macro summer” could lead to a Bitcoin (BTC) price breakout in the near term, according to Raoul Pal, the founder and CEO of Global Macro Investor, who wrote in a July 29 X thread:“Macro Summer is beginning to take hold and should last at least for the rest of 2024 and into 2025 […] Bitcoin is ready to soon break the giant cup and handle and head into the Banana Zone.”BTC, cup and handle formation, weekly chart. Source:Raoul Pal

The “Banana Zone” is a term coined by Pal to describe a period of significant upward price movement. In this case, it suggests that Bitcoin price could break out to a new all-time high.

Related:Bitcoin ‘Trump pump’ potential matches key technical signal — Can BTC break $71.5K?Bitcoin needs a close above $70,000 to confirm the breakout

According to Pal, Bitcoin will confirm a move toward a new record high when it breaks out of the current cup and handle formation, a technical chart pattern used to spot bullish uptrend continuations.

This confirmation will come once Bitcoin price breaches the $70,000 mark, according to crypto trader Moataz Elsayed, also known as “Eljaboom.” The trader wrote in a July 28 X post:“BTC Massive Cup And Handle [formation]. A weekly close above $70,000 and the game will be over for bears!”BTC/USD, one-week chart up and handle formation. Source: Eljaboom

Contributing to the bullish sentiment, Bitcoin’s open interest reached a new all-time high on July 29, pointing to increased interest and liquidity in the world’s first cryptocurrency that could result in a breakout.

Related:World’s largest BTC miner Marathon buys $100M BTC to go ‘full HODL’Bitcoin price catalysts: Nasdaq correction, US elections and weakening US dollar

Three notable catalysts support Bitcoin’s imminent price breakout, and the first is the Nasdaq’s correction.

The Nasdaq (NDX) is on track to perform its “healthy correction,” according to Pal, who shared the below chart.NDX, one-year chart. Source:Raoul Pal

The second catalyst could be the upcoming US elections, as election years have historically been bullish for the stock market and Bitcoin prices.S&P 500 during presidential election years. Source:Raoul Pal

Lastly, a potential decrease in the value of the US dollar could catalyze Bitcoin’s rally to a new all-time high, according to Pal, who wrote:“The final thing that would ease financial condition further would be a weaker dollar, which I think is likely.”DXY, one-year chart. Source:Raoul Pal

During periods of fiat currency devaluation, investors often turn to safe-have assets like Bitcoin and gold to protect their purchasing power.

Magazine:Trump’s Bitcoin push, spot Ether ETF debut, and more: Hodlers Digest, July 21-27# Bitcoin# Cryptocurrencies# Business# Bitcoin Price# Bitcoin Analysis# Investments# Price Analysis# Cryptocurrency InvestmentAdd reaction