Bitcoin (BTC) surged over 6% yesterday after Federal Reserve Chairman Jerome Powell adjusted policy, signaling a possible 25bps interest rate cut at the next meeting on September 18. This unexpected news fueled Bitcoin’s recent volatility, with prices fluctuating unpredictably over the past few weeks.
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Critical on-chain data from CryptoQuant shows some encouraging signs: the data suggests traders are eyeing further price gains.
As the market digests the Fed’s new stance, all eyes are on Bitcoin to see if this is the start of a new bull market.
Bitcoin data signals market optimism
Bitcoin is trading above $63,000 and is gaining momentum as it prepares to break through the crucial $65,000 level.
CryptoQuant’s on-chain data indicates growing market optimism and highlights key trends that could lead to higher prices. Bitcoin Exchange Reserves The supply of BTC on centralized exchanges has plummeted to an all-time low. Since the end of July, the supply of BTC on exchanges has fallen from over 2.75 million to around 2.67 million, a 3% drop in just 30 days.
This drop indicates that there is less BTC available to trade on exchanges, which could create a supply shock – a situation where demand exceeds supply – and cause the price to spike. As the availability of Bitcoin on exchanges decreases, the chances of the price increasing increase.
Bitcoin is beginning to gain momentum and the market is closely monitoring this trend which could propel it into new bullish territory.
BTC Price Trend: $65,000 Next?
After two weeks of volatility and consolidation, Bitcoin is currently trading at $64,100 at the time of writing, above the crucial $200 daily level. Moving Average (MA).
This level is crucial for bulls to sustain the uptrend over the long term.For the price to surpass the $65,000 level, it will need to confirm bullish structure above the $57,500 level and, ideally, a move above the daily 200 exponential moving average (EMA) at $59,538.
These levels are essential to sustain the upward momentum. Staying above these levels will signal market strength and bolster trader and investor confidence. The data on declining Bitcoin exchange reserves and central bank policy announcements have prompted an optimistic response. Buoyed by these bullish indicators, investors are increasingly expecting Bitcoin to soar in the coming months.
Cover image from Dall-E; chart from TradingView.