Bitcoin Surges After Federal Reserve Policy Announcement
Yesterday, Bitcoin (BTC) surged over 6% following Federal Reserve Chairman Jerome Powell’s announcement about adjusting the policy and hinting at a potential 25bps rate cut at the next meeting on September 18. This unexpected news has caused Bitcoin’s recent volatility, with prices fluctuating unpredictably in recent weeks.
Crucial on-chain data from CryptoQuant is offering a glimmer of hope for the market, with traders positioning for further price appreciation. As the market absorbs the Fed’s new stance, all attention is now on Bitcoin to see if this could signal the start of a new bullish phase.
Optimism in Bitcoin Data
Bitcoin is currently trading above $63,000 and gaining momentum as it looks to break past the critical $65,000 mark. On-chain data from CryptoQuant indicates growing optimism in the market, highlighting a significant trend that could drive prices higher.
- The exchange reserves of Bitcoin on centralized platforms have reached an all-time low
- The supply of BTC on exchanges has dropped from over 2.75 million to about 2.67 million in just 30 days
This reduction suggests that there is less BTC available for trading on exchanges, potentially creating a supply shock where demand surpasses supply, leading to a possible price surge. As the availability of Bitcoin on exchanges decreases, the chances of a price hike increase, leading to potential bullish territory for Bitcoin.
Bitcoin’s Next Price Target: $65,000
Following two weeks of volatility and consolidation, Bitcoin is presently trading at $64,100, maintaining above the crucial daily 200 Moving Average (MA). It is crucial for bulls to sustain this level to continue the uptrend in a higher time frame.
- In order to surpass the $65,000 mark, it must confirm its bullish structure by staying above $57,500
- Remaining above the daily 200 Exponential Moving Average (EMA) at $59,538 is also key
Maintaining these levels is critical for sustaining upward momentum and indicating strength in the market. Traders and investors are optimistic about a potential Bitcoin rally in the coming months, driven by the decreasing Bitcoin exchange reserves and the recent central bank policy announcement.
Hot Take: Brace for Bitcoin’s Next Move 🚀
Given the recent events and market indicators, Bitcoin looks poised for further gains as it approaches the $65,000 mark. With decreasing exchange reserves, a supportive policy stance from central banks, and growing optimism in the market, Bitcoin could be gearing up for a significant bullish phase.
Stay tuned for more updates as Bitcoin continues its journey towards potential new highs, fueled by positive market sentiments and fundamental factors supporting its price growth.
Sources:
https://cryptoquant.com/asset/btc/chart/exchange-flows/exchange-reserve?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line
https://www.investopedia.com/terms/m/movingaverage.asp
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