Key Takeaways
- Bitcoin gains 2.5%, passing $61,000 amidst stock market rally.
- Corporate share buybacks, totaling $1.15 trillion, contribute to rising market sentiment.
- Analysts remain cautious, as Bitcoin struggles to break out of a downward-sloping range.
Bitcoin climbed 2.5% on August 20, reaching a local high of $61,424, as optimism returned to the market.
Analysts suggest that rising risk-on sentiment in equities is contributing to Bitcoin’s momentum.
A surge in corporate share buybacks, amounting to $1.15 trillion this year, and increased demand for stock market dips, particularly through Goldman Sachs’ trading unit, are seen as boosting the market.
Analysts chime in
QCP Capital, a trading firm, highlighted that Bitcoin may benefit from this renewed risk appetite. They noted:
Risk-on sentiment could extend to Bitcoin and gold, pushing BTC higher given the strong demand for topside calls.
The U.S. Federal Reserve’s annual Jackson Hole symposium, scheduled later this week, could further influence financial policy and the broader market, according to Coin Telegraph.
Despite recent gains, Bitcoin remains stuck in a downward-sloping range, with key resistance near $70,000 yet to be breached. Popular trader Mark Cullen commented:
Bitcoin squeezed through the 59.5K level overnight, taking liquidity above the weekend highs. But the question still remains: Can Bitcoin maintain its momentum?
Analyst Rekt Capital observed that Bitcoin continues to mirror previous price movements as Bitcoin attempts to reclaim support levels that could signal further bullish activity. The analyst stated:
History has repeated itself.
