Bitcoin (BTC) Price Prediction: BTC Surges 7% in 48-Hours, Can Bulls Reclaim $65k?

Bitcoin began August with a shaky start, but over the past week, the cryptocurrency has gained steady upward momentum. The most recent wave of Bitcoin's rally can be linked to Grayscale

Bitcoin price soared on August 14, rising above $61,700 after a 7% gain in the last two days. On-chain data reveals increased demand from Grayscale’s investment trusts, coinciding with dovish US CPI data. Could BTC be poised for a $65,000 breakout?

BTC Surges 7% in 48-Hours

Bitcoin began August with a less-than-stellar performance, trading within a narrow range with minimal gains. However, over the past week, the cryptocurrency has gained steady upward momentum.

The most recent wave of Bitcoin’s rally can be linked to Grayscale, a major institutional investor, which announced new crypto asset offerings to its U.S.-based clientele.

On August 12, Grayscale launched new cryptocurrency trusts for SUI, TAO, and MKR. This event, and other institutional activity, signaled deeper adoption in the crypto space. The bullish sentiment from Grayscale’s move has since extended to Bitcoin, driving up its price.

As the chart above indicates, Bitcoin's price has risen 7% in the last two days. On August 12, BTC was trading around $58,000, and by August 14, it had surged to $61,700. This price increase can be largely attributed to the positive impact of Grayscale’s actions on the market.

Now, Bitcoin seems poised for further gains, driven by an imminent shift in the U.S. macroeconomic landscape.

Dovish CPI Could Drive BTC Further Upwards

Building on the momentum from Grayscale’s recent activity, Bitcoin's price is also being buoyed by favorable macroeconomic conditions.

On August 14, the U.S. Bureau of Labor Statistics disclosed the Consumer Price Index (CPI) data for July, which provided additional bullish sentiment for Bitcoin.

As shown in the chart above, the U.S. CPI rose by 2.9% year-over-year, which is slightly below the estimated 3.0%. Meanwhile, the core CPI, which excludes food and energy prices, increased by 3.2% year-over-year, matching the forecast. These figures suggest that inflation is slowing, reinforcing a dovish outlook on monetary policy.

A dovish CPI report can be interpreted as a signal that the Federal Reserve may halt its interest rate hikes or even consider a rate cut in the near future. Many market participants now expect an interest rate cut as early as September. Lower interest rates generally lead to a weaker U.S. dollar and higher demand for alternative assets like Bitcoin.

The combination of Grayscale’s institutional actions and the dovish CPI report presents a compelling case for a bullish Bitcoin price trajectory in the near term.

BTC Price Forecast: All Eyes on $65k Target

As Bitcoin continues its upward trajectory, strategic traders are keeping a close watch on the $65,000 target, which has been highlighted by several technical indicators.

The technical indicators in the chart below suggest that BTC is leaning bullish, with key resistance and support levels now in focus.

First, the Keltner Channels (KC) indicator highlights critical resistance at $65,000, with support solidified around $58,000.

If Bitcoin’s price breaks above the upper KC band at $65,000, it could trigger a robust bullish momentum, potentially driving the price even higher. On the downside, a breach of the lower KC band at $58,000 could signal a prolonged retracement, but this appears unlikely given the current market dynamics.

Bitcoin price outlook remains positive, supported by both institutional demand and favorable macroeconomic conditions.

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