Bitcoin price finally surpassed the $64,000 mark yesterday reaching a new height of $64,879.13 following weeks-long ups and downs. This surge was in anticipation of coming Reserve Bank’s interest rate cut decision backed by Fed Chair Jerome Powell’s positive signal for rate cuts. The broader crypto market responded to this event with a surge in the market by 4.07% and Bitcoin is one among many that surged by more than 5%.
Supporting the growth, the Greed Index, which measures investors’ sentiment, also surged from 34 to 56 within 24 hours. This indicates a surge in investors’ confidence in the future trajectory of the cryptocurrency market.
What Led Surge in Bitcoin Price?
It was reported that Bitcoin’s price had experienced significant fluctuations in recent months, reflecting broader market trends and geopolitical concerns. Despite these headwinds, investor sentiment towards Bitcoin remained positive. Several factors were cited as having contributed to Bitcoin’s recent recovery to the $64,000 level. Encouraging statements from Federal Reserve officials regarding potential rate cuts, bullish predictions from crypto analysts and investors, and growing institutional and retail interest in Bitcoin ETFs were all mentioned as factors supporting the cryptocurrency’s price.
Federal Reserve Signals
Bitcoin Pierce continued fluctuating for two weeks as investors looked for signs of a potential bull run. Meanwhile, the U.S. Fed Chairman Jerome Powell spoke at the Jackson Hole symposium hinting at a possible interest rate cut. His remarks followed the statements from other Fed officials earlier this week indicating that the rate cuts may begin soon.
However, Powell didn’t specify the exact time for the initial rate cut but confirmed the present moment as the policy pivot time. He also emphasized that the upcoming data, the evolving economic outlook, and the balance of risks would shape the interest rate levels, and the pace of rate cuts.
Technical Indicators
Bitcoin price seems technically sound, trading above key moving averages like the 50-day, and 200-day Simple Moving Averages. According to Tradingview technical analysis,14 Moving Average indicators signal a buy, and only 1 suggests neutral. The 50-day Moving Average is nearing the Golden Cross formation, suggesting a potential bullish uptrend.
Crypto analysts are predicting a significant rise in Bitcoin price. In a recent YouTube analysis, a crypto trader named Mister Crypto suggests that Bitcoin could break its current resistance level of $64,000 and reach a new height of $68,000. This surge in Bitcoin price marks the first major price increase in 20 days.
Bitcoin price is currently facing a crucial test $64,000 mark. This price level previously acted as the support level in the months after U.S. Bitcoin ETF approval by the SEC on Jan 11. However, it has now become a resistance level. If Bitcoin can successfully break through this barrier, it could signal a strong uptrend.
Similarly, another crypto trader Elja, in his X post, predicted that Bitcoin could reach $68,000-$70,000 as the current time is bullish. Per the chart he posted in X post, all indicators price breakouts, RSI, and MACD show positive for the bull run of Bitcoin. In another post he suggested to keep patience as it could take few more weeks to breakout.
Net Inflow in Spot Bitcoin ETFs Supports for Upward Move
Spot Bitcoin ETFs continued to attract significant inflows last week, totaling $506.4 million according to Farside UK data. This marks seven consecutive weeks of positive inflows, suggesting strong investor confidence in the asset class. The influx of funds helped to bolster Bitcoin price above $60,000.
Institutional and retail investors alike are driving the demand for Bitcoin ETFs. BlackRock and Fidelity, two major financial firms, reported inflows of $86.8 million and $64 million, respectively, into their Bitcoin ETF products. Crypto traders often view these ETF flows as a reliable indicator of overall market sentiment.
Bitcoin is currently trading at $64,564.82, having experienced a nominal surge by 0.26% in the past 24 hours. However, the trading volume has dropped significantly by 44.17% during the same period. This drop in the trading volume coincides with a cautionary approach from investors ahead of the upcoming PCE data scheduled on August 30th.
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