Bitcoin Price Eyes $70k as Coinbase, Microstrategy, and US Fed form Triple BUY Signal

Bitcoin Price Analysis:

Bitcoin price surged past $60,640 on September 14, up 9.17% in 48-hours, driven by key bullish developments involving MicroStrategy, Coinbase, and U.S. macroeconomic indicators.

After a rocky start to September, BTC finally broke free from its early-month downtrend, rising sharply in response to positive market news and economic indicators. Can bulls maintain momentum and push Bitcoin price toward the $70,000 mark?

Bitcoin Price Breaks $60k: Is $70k Next?

After a lackluster beginning to September, Bitcoin price snapped out of its bearish trend on September 6. The catalyst for this shift was the release of the U.S. Non-Farm Payrolls (NFP) report, which showed weaker-than-expected job growth, easing concerns over aggressive Federal Reserve policy. This dovish economic data triggered a 10% rally between September 6 and September 10, bringing BTC up to $57,900 before facing resistance.

However, the bullish momentum returned with full force over the past 24 hours, propelling Bitcoin price past by another 9.17% as reached a 20-day peak of $60,640, the time of writing on September 14.

Market reports attribute this renewed surge to a confluence of three significant bullish catalysts: a major Bitcoin purchase by MicroStrategy, the launch of wrapped Bitcoin (wBTC) on Coinbase, and dovish signals from U.S. monetary authorities.

This analaysis explores how these 3 factors could support continued Bitcoin price rally toward the $70,000 level.

1. MicroStrategy Buys Another $1 Billion Worth of Bitcoin

One of the major drivers behind the latest rally in Bitcoin price is the announcement that MicroStrategy, the largest publicly traded holder of Bitcoin, has made another substantial investment in BTC.

On September 12, MicroStrategy revealed that it had purchased an additional $1 billion worth of Bitcoin, bringing its total holdings to over 280,000 BTC.

MicroStrategy CEO Michael Saylor has been a vocal advocate of Bitcoin as a long-term store of value, positioning the company as one of the most prominent institutional backers of the cryptocurrency. The firm’s latest purchase is viewed as a strong vote of confidence in Bitcoin’s price potential, especially in the face of ongoing macroeconomic uncertainty.

Historically, large Bitcoin purchases by institutional investors have often signaled bullish market conditions, attracting further interest from retail investors and traders. MicroStrategy’s move is no exception. With over $1 billion of fresh capital injected into BTC, analysts believe this could further strengthen support levels and push Bitcoin price higher in the coming weeks.

2. Coinbase Launches Wrapped Bitcoin (wBTC)

In a separate but equally impactful development, Coinbase, the largest cryptocurrency exchange in the U.S., announced the launch of wrapped Bitcoin (wBTC) on its platform on September 13. Wrapped Bitcoin is a tokenized version of BTC that runs on the Ethereum blockchain, allowing Bitcoin holders to participate in decentralized finance (DeFi) applications.

The introduction of wBTC on Coinbase represents a significant step forward for Bitcoin’s integration into the DeFi ecosystem, which has traditionally been dominated by Ethereum and other altcoins.

By bridging the gap between Bitcoin and Ethereum-based DeFi protocols, wBTC provides Bitcoin holders with new opportunities to earn yields, borrow, lend, and trade without having to sell their BTC.

The launch of wBTC on Coinbase is expected to increase demand for Bitcoin by attracting a broader range of users looking to leverage their BTC holdings in DeFi markets. Additionally, Coinbase’s large user base could facilitate widespread adoption of wBTC, further boosting liquidity and contributing to upward pressure on Bitcoin price.

3. U.S. Fed Rate Cut Anticipated After Dovish CPI and NFP Reports

The third major catalyst for Bitcoin price’s recent breakout is the growing anticipation of a dovish stance from the Federal Reserve in its upcoming Federal Open Market Committee (FOMC) meeting on September 17.

Two key pieces of economic data—the Consumer Price Index (CPI) report and the Non-Farm Payrolls (NFP) report for August 2024—have recently shown weaker-than-expected inflation and job growth, respectively. These figures suggest that the Federal Reserve may ease its policy stance to avoid further economic slowdown.

Consumer Price Index CPI in the United States increased to 314.80 points in August from 314.54 points in July of 2024. Notably, this also signifies that CPI in the United States has now reached an all time high, signaling an overheating inflation on price of core household items.

Market participants now expect the Fed to signal a potential interest rate cut, or at the very least, a pause in rate hikes, which could weaken the U.S. dollar and support higher-risk assets like Bitcoin. Historically, low-interest-rate environments have been favorable for Bitcoin price, as investors seek alternatives to traditional assets that offer higher yields.

With the FOMC meeting just days away, the possibility of a dovish pivot by the Fed is adding further fuel to Bitcoin’s upward momentum. Analysts suggest that a rate cut or even dovish language from the central bank could create the perfect conditions for Bitcoin price to continue its rally and approach the $70,000 level.

Technical Analysis: Key Levels to Watch

From a technical standpoint, Bitcoin price has broken through several key resistance levels over the past week. After consolidating around the $50,000 mark in late August, BTC staged a strong rebound following the release of dovish economic data. The initial rally between September 6 and September 10 brought Bitcoin price to $57,900, where it briefly faced resistance.

However, as bullish catalysts began to emerge, BTC quickly overcame this resistance, surging to a new monthly high above $60,000.

The next key resistance level to watch is $63,500, followed by the psychological $70,000 mark. A break above $63,500 could signal the beginning of a larger upward move toward $70,000, especially if additional bullish news or macroeconomic developments further support market sentiment.

On the downside, support for Bitcoin price is expected to hold around the $57,900 and $55,000 levels. If BTC falls below $55,000, it could indicate a short-term retracement, with the next major support level around $52,000.

Conclusion: Bulls Eye $70,000 as Bitcoin Momentum Builds

In summary, Bitcoin price has surged past $60,000, driven by a combination of institutional investment, new product launches, and dovish economic data. MicroStrategy’s $1 billion purchase, Coinbase’s introduction of wrapped Bitcoin, and the expectation of a dovish Federal Reserve stance have all contributed to renewed bullish momentum in Bitcoin markets.

As the next FOMC meeting approaches, traders and investors are closely watching for further signals from the Federal Reserve. A dovish policy shift could provide the final push that propels Bitcoin price toward $70,000.

In the meantime, technical indicators suggest that Bitcoin is in a strong position to continue its upward trajectory, with key resistance levels at $63,500 and $70,000. However, market participants should remain cautious, as any unexpected developments in the macroeconomic landscape or cryptocurrency markets could lead to volatility.

With these major catalysts at play, the coming weeks will be critical for BTC as it seeks to maintain its recent gains and potentially achieve new all-time highs.