Bitcoin (BTC) continues to sustain its short-term upside price momentum with investors looking out for signals to end the ongoing bear market. The gains have propelled Bitcoin to hit a new six-week high while pulling along the general cryptocurrency market.
In particular, the flagship cryptocurrency was trading marginally higher on Friday, July 29, recording a price of $24,020 by press time with gains of almost 4% in the last 24 hours.
The new milestone follows Bitcoin’s extended sell-offs when the asset faced rejection in June, struggling to sustain its value above $20,000, and has recovered nearly 20% a month later.
Despite the gains, Bitcoin has dropped 48% in 2022, with the current price almost 60% off from its all-time high of nearly $68,000 in November last year.
Bitcoin reacts to interest rate hike
Bitcoin’s upward momentum comes in the wake of the Federal Reserve interest rate by 75 basis points for the second month to contain the U.S. inflation that continues to hit record highs.
Additionally, the asset is reacting well to the U.S. GDP data highlighting the economy’s narrow escape from a recession. Risk assets such as Bitcoin were expected to rally after the economy shrank in the last three months by 0.9%.
BTC’s next price target
Following the recent gains, cryptocurrency analyst Ali Martinez, in a tweet posted on July 29, believes that the asset’s next possible target is $27,000 but will be determined by the demand.
He notes that Bitcoin has formed a crucial support floor between $21,700 and $22,380, a region that saw 691,000 addresses purchase 500,000 BTC.
It is worth noting that Bitcoin’s ongoing price surge aligns with the bullish nature of large-cap cryptocurrencies. As reported by Finbold, Bitcoin and Ethereum were among the top five trending cryptocurrencies dethroning altcoins.
Consequently, the buying pressure on the asset has partly pushed the general market to regain a capitalization of $1 trillion. At the same time, Bitcoin continues to correlate with the stock market after briefly decoupling in early July.
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