Bitcoin (BTC) Price Inches Closer to Reclaiming Its Post-Halving Reaccumulation Range

Bitcoin (BTC) price is inching closer to reclaiming its post-halving reaccumulation range, setting the market abuzz with anticipation.

Bitcoin (BTC) price is inching closer to reclaiming its post-halving reaccumulation range, setting the market abuzz with anticipation.

Amid critical weekly close, traders and investors are keeping a close watch on the $60,600 level. As of now, BTC price is slightly above this threshold at $60,700.

Stock Market Rally To Fuel Bitcoin Price Surge

Crypto analyst Rekt Capital expects BTC to enter the post-Halving reaccumulation phase if it closes above $60,600 this week. Bitcoin price is currently well above $60,600. However, since there are six days left for the week to end, the uncertainty remains.

Highlighted earlier this week, one of the significant factors catalyzing Bitcoin’s upward momentum is the ongoing stock market rally. According to QCP Capital’s analysis released today, momentum traders and trend-followers are re-leveraging their positions.

This activity has been amplified by August’s lower liquidity, which typically sees reduced trading volumes as major financial institutions and traders take summer vacations. Adding fuel to this rally, corporate share buybacks have surged. Companies are buying back a staggering $1.15 trillion worth of shares this year.

This trend has been particularly pronounced among clients of Goldman Sachs’ trading unit. It has reported record demand for buying dips in the market. Hence, QCP Capital noted this surge in share buybacks reflects corporate confidence and could have a spillover effect on other risk assets, including Bitcoin.

The risk-on sentiment evident in the equities market could extend to cryptocurrencies and precious metals like gold. Bitcoin, in particular, stands to benefit from this environment as demand for topside call options on BTC increases. This growing interest in bullish options suggests that traders are betting on further Bitcoin price appreciation.

U.S. Election Dynamics

Finally, QCP highlighted the upcoming U.S. 2024 elections, which are a critical focal point for market participants.

QCP notes a skew in Bitcoin options favoring puts ahead of the election, indicating some caution among traders. There is a significant six-point volatility spread between pre and post-election expiries. This reflects uncertainty about the election’s outcome and its potential impact on Bitcoin price.

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