Bitcoin Surges Past $62K Following Federal Reserve Rate Cut, Targets $70K

Cryptonews John Brightwater September 19, 2024

Bitcoin Surges Past $62K Following Federal Reserve Rate Cut, Targets $70K

Summary
Bitcoin has surpassed $62,000 after a 50-basis-point rate cut by the U.S. Federal Reserve, with projections aiming for $70,000 by month-end. A breakout pattern in the 4-hour chart supports this surge, even as Bitcoin ETFs experience a dip in inflows. Analysts identify key resistance and support levels, creating an optimistic yet cautious outlook for the cryptocurrency’s performance this month.

Bitcoin has surged past $62,000 following a significant rate cut from the U.S. Federal Reserve, and there is speculation that this bullish momentum may propel the cryptocurrency towards $70,000 by the end of the month. On September 18, Federal Reserve Chairman Jerome Powell’s announcement of a 50-basis-point reduction in interest rates sparked considerable optimism in the market, initiating a robust rally in Bitcoin’s price. This bullish trend was further evidenced by a breakout in Bitcoin’s 4-hour chart, characterized by the formation of an inverted head-and-shoulder pattern with a critical neckline just above $61,451. Bitcoin’s price subsequently demonstrated a 3.05% increase in the past 24 hours, leading to a commendable 7.21% rise over the week. As Bitcoin sustains its dominance above the $62,000 level, the chart illustrates a golden crossover between the 50- and 200-day exponential moving averages, a sign often interpreted as a positive price action indicator. However, despite the increased activity in Bitcoin’s price, there has been a notable dip in the U.S. Spot Bitcoin ETFs. The past four days had seen steady inflows in Bitcoin ETFs come to an abrupt halt, culminating in a 52.7% outflow. Notably, Grayscale’s Minitrust remains an exception, recording a modest inflow of $2.7 million, while the ARK 21Shares ETF experienced the most significant outflow at $43.4 million. To project potential future price action, Bitcoin’s next resistance levels are identified at approximately $64,600 and $65,560. With the ongoing bullish trend, analysts are optimistic that Bitcoin could aim for the level of $69,848 by the end of the month. Conversely, robust support levels at $60,000 and $57,681 may cushion any potential adverse movements as the dynamic average lines maintain a positive trajectory, which could absorb temporary surges in supply pressure.

This article discusses the recent surge in Bitcoin’s price, driven by a decision from the U.S. Federal Reserve to cut interest rates. Such monetary policy can have significant implications for the cryptocurrency market, often leading to increased investment and optimism among traders. Additionally, the dynamics within Bitcoin ETF flows may affect investor sentiment and market stability. Understanding these connections provides a framework for evaluating Bitcoin’s potential to reach new price milestones in the near future.

In summary, Bitcoin’s recent price rally above $62,000, catalyzed by a Federal Reserve rate cut, has set the stage for ambitious projections toward $70,000. While chart indicators suggest bullish trends, the observed outflows from Bitcoin ETFs warrant caution among investors. Robust support levels and market sentiment will be critical in determining whether Bitcoin can continue its upward trajectory this month.

Original Source: thecryptobasic.com