The cryptocurrency market experienced a significant rally on Friday, with Bitcoin (BTC) approaching the pivotal $60,000 mark, fueled by robust gains across traditional markets.
Despite a brief dip to $57,600 earlier in the day following MicroStrategy’s announcement of a $1.1 billion Bitcoin purchase, the leading cryptocurrency rebounded strongly, posting a 3.4% gain over the past 24 hours to reach $60,034.
Ethereum’s Ether (ETH) also saw a notable increase, reclaiming the $2,400 level with a 2.7% rise. This surge in activity was reflected in Ethereum’s fee revenues, which jumped nearly 60% in the past week according to crypto analytics firm IntoTheBlock.
Renowned trader and analyst Bob Loukas suggests that Bitcoin’s upward trajectory may have more room to run based on daily cycles analysis. This theory in technical analysis posits that price movements follow wave patterns with recurring cycles between peaks and troughs.
A chart shared by Loukas on X indicates that Bitcoin likely established a local bottom below $53,000 on September 6 and is currently in its 7th day of a new cycle. Given the previous cycle spanned over 60 days and peaked on the 24th day, there’s potential for BTC to hit new highs before reversing course.
Loukas commented, “These cycles have time left [and] should remain strong into FOMC.”
Despite the prospect of looser monetary policy, which could theoretically benefit risk assets, lingering concerns about a possible recession are tempering market enthusiasm, crypto investment firm Ryze Labs noted in a Friday report.
The report states, “The key variable here is the state of the U.S. economy. If it remains resilient and avoids a recession, risk assets are likely to continue their upward trajectory. If not, then we’re in for a bumpy ride.”
