Bitcoin Price Prediction as Wall Street Buying Frenzy Continues

Bitcoin price held near $79,800 after strong U.S. jobs data revived rate-hike expectations. The cryptocurrency remained below resistance after reaching roughly $82,160 earlier this month.

CoinMarketCap showed BTC trading around $79,800 at publication. The price remained well above its July low near $57,900.

Bitcoin Price Holds Bull Flag Below $82,800 Resistance

Bitcoin price continued consolidating after its sharp recovery from July lows. The supplied TradingView chart showed price moving inside a tight range below recent highs.

The structure resembled a bullish flag after the earlier advance. However, the pattern still requires an upside breakout for confirmation.

Reuters technical analysis identified resistance near $82,793. That area also aligned with Bitcoin’s recent May high and a Fibonacci retracement level.

A daily close above that resistance could bring $90,000 into focus. Continued strength above $90,000 would place the $100,000 psychological level back on traders’ radar.

The bullish setup would weaken if Bitcoin lost support near $75,700. A deeper decline below roughly $71,800 would further damage the recovery structure.

Momentum indicators on the supplied TradingView chart had also moved higher. However, rising oscillators alone do not confirm an upcoming breakout.

BTC Price Jumps as ETF Inflows Jump

The ongoing Bitcoin price action has attracted buyers from American institutional and retail investors. Data shows that these BTC ETFs added over $174 million in assets on Friday this week. A day before that, these funds, led by BlackRock’s IBIT, added $730 million.

Spot bitcoin ETFs have added over $770 million in the first five days of the month. If this growth accelerates, it means the funds may surpass the $3.52 billion added in August this year.

This buying by Wall Street traders signals that they expect the token’s price to rebound, especially now that the stock market has become highly volatile. For example, in South Korea, the Kospi Index has dropped by nearly 30% from its year-to-date high. This is notable since South Korean stocks were among the top drivers of the AI bull run earlier this year.

Top AI stocks in the US have also pulled back from their peak this year. For example, Micron, SanDisk, and Seagate remains down by double digits from their highest levels. This price action has likely prompted investors to rotate back into Bitcoin and other altcoins.

Bitcoin has also done well as a sense of greed returns in the market. The Crypto Fear and Greed Index has jumped to the greed zone of 75. In most cases, Bitcoin tends to do well when there is a sense of greed in the market.

The Federal Reserve is a Major Wild Card

Still, the ongoing Bitcoin price rally faces a major headwind from the Federal Reserve, which may raise interest rates in the coming months. Data released on Friday showed that the economy created over 160k jobs last month. The Bureau of Labor Statistics (BLS) also revised the July jobs report upward.

These numbers, coupled with the fact that inflation remains above the Federal Reserve’s 2% target, mean that the bank has an incentive to hike. By doing that, the Fed will bring the rate to between 3.75% and 4%. Bitcoin and other risky assets tend to underperform when the Fed is hiking rates. This explains why Bitcoin and top indices like Dow Jones and the S&P 500 slipped after the jobs report on Friday.

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency and equity markets can experience sharp price movements.