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Bitcoin Breaks Above 80,000 USD with Institutional Funding Support, Analysts Divided on Sustainability of Rally
BlockBeats news, September 24: Bitcoin recently broke above 80,000 USD and briefly touched 87,300 USD. Analysts believe this rally is supported by strong institutional funding and spot ETF inflows, but indicators including trading volume, market breadth, and derivatives positioning show that opinions remain divided on whether the rally can continue.
K33 said that the magnitude and duration of Bitcoin’s recent pullback were both significantly smaller than those seen during the major bear markets of 2013, 2017, and 2021, and that the low of the current cycle may already be established. K33 also noted that Bitcoin still has room to catch up with gold and U.S. stocks.
21Shares believes that the U.S. SEC’s introduction of the “innovation exemption” and the CFTC’s advancement of related rulemaking have provided further regulatory support for the crypto market. K33, meanwhile, believes that the dissipation of uncertainties surrounding the Federal Reserve’s rate decision and the vote on the CLARITY Act also helped the market break through.
However, Nexo took a cautious stance, pointing out that recent market trading volume has declined, market breadth has narrowed, and derivatives leverage has also increased, potentially exposing Bitcoin to the risk of profit-taking or a short-term correction. Capital.com analysts believe that 87,000 to 88,000 USD is a near-term resistance zone; after a breakout, the next target is 90,000 USD, while downside levels to watch are 84,000 to 85,000 USD and the 80,000 USD support level.
Tom Lee, founder of Fundstrat, said that the crypto bull market has begun, attributing the current market movement to the return of AI funding to the crypto market, improvements in crypto fundamentals such as tokenization and AI, and the end of the 4-year cycle.
Original link https://m.theblockbeats.info/flash/368708