Bitcoin (BTC) prevailed under the resistance level of $12,000 at its August monthly close. However, analysts predict that the Bitcoin price will rise above its resistance level, especially with the Fed’s announcement last week, which could positively affect BTC price.
Bitcoin has been trading in the mid $11K range for the past few weeks, shortly after its rejection from its 2020 high of $12,468 on Binance. After reaching its new yearly high, Bitcoin’s price slumped back to under $12,000, even dipping to the $11,100 levels.
Bitcoin closed above $11,500 in August’s monthly close, above its pivotal resistance level — labeling its second-highest monthly close in history. Crypto analyst Josh Rager believes that Bitcoin’s August closing monthly candle at these levels could potentially trigger a bull run.
Ahead of the monthly close, the Rager twitted:
Rager added that there is not much resistance between Bitcoin’s current price and the $13,000 price level. He expects BTC’s price to reach $12,000 again soon.
Bitcoin has seen some positive upticks after the announcements made by the US Federal Reserve Chairman, Jerome Powell. Powell recently announced the US central bank’s latest measures to manage inflation in communication that could have long-term indications for the Bitcoin price and cryptocurrency.
Powell’s much-anticipated speech on inflation control revealed that the US central bank is prepared to let inflation rise above its traditional 2 percent target. While the Federal Reserve’s long-term goal is an inflation rate of 2 percent, the policy’s flexibility will most likely see periods of much higher inflation. The Chairman’s speech emphasized that the central bank’s actions to achieve economic stability will be most effective if longer-term inflation expectations remain well-anchored at 2 percent.
Economists are also expecting a double-dip recession, giving a Bitcoin bull run case more validation. Based on a popular tool — Andrews’ Pitchfork, analyst Josh Olszewicz says that Bitcoin (BTC) will soon attempt a bull run towards $15,800 as the level serves as the median line of the Pitchfork. The tool allows traders to identify and define the long-term movement of the asset.
Fidelity’s Bitcoin fund and BTC price model
The president, and director of digital funds at Fidelity, Peter Jubber, have lately listed a new fund dedicated to Bitcoin with the United States Securities and Exchange Commission (SEC). According to Bloomberg, the Bitcoin fund will be available for qualified purchasers through registered investment advisers, family offices, and other institutions.
Fidelity Digital Assets also authorized a stock-to-flow appraisal model built by Plan B, which foretells Bitcoin’s price at $1 million. The company examined ways to attract investors to Bitcoin as an investment and noted that Bitcoin is increasingly integrated into traditional investment portfolios.