Optimism surrounds bitcoin's price potential, but warnings also point to a close correlation with stocks.
Bitcoin (BTC) hit $24,000 when Wall Street opened on July 20 as good times in the crypto market continued to spring up.
BTC price rebound 'all macro driven'
BTC/USD breached the latest milestone after a brief consolidation, according to Cointelegraph Markets Pro and TradingView.
As bitcoin and shanzhai have benefited from the dollar's decline and stock market gains, the pair's 24-hour gains have held near 8%, with weekly gains approaching 25%.
Bitcoin's rally has seen the bulls regain key trendlines they lost in June, but the jury is still out on whether new-found strength can consistently outperform the current weekly candle.
"Bitcoin rally looks good? Yes. But BTC will not be proud of this rally, "commented analyst Venturefounder.
"The correlation between BTC and NASDAQ remains at 91% (historically high) and both are focused on Fed policy, interest rate and recessionary fear forecasts, and guidance on the DOLLAR DXY. Everything is macro driven."
Despite this, the DOLLAR index (DXY) showed no signs of a successful recovery on the day and was rejected at 107 after a partial bottom.
Popular trader and analyst Josh Raga also asked for a "confident" prompt on the $30,000 area in order for bitcoin to truly shift from bearish to bullish.
Metric predicts it will reach $120,000 by 2023
Zooming in, one bitcoin price indicator leads analyst TechDev to believe BTC/USD will hit an all-time high before the next bulk subsidy halves in 2024.
TechDev marks Bitcoin's True Strength Index (TSI), which uses multiple basic calculations to determine how overbought or oversold an asset is at a particular price.
He believes the downward trend in prices since the last record high in November 2021 is still in place, so the historical pattern is likely to repeat itself.
The resurgence of bitcoin's relative strength index (RSI) has also caught the attention of PlanB, creator of the equity-to-flow model.
In crypto, if you want to take advantage of the next bull market, you need to have a community of people who can stick together and keep perspective. If it's just you, looking around and finding nobody, it's really hard to stay in this industry.