As a seasoned researcher with a decade-long experience in financial markets and a keen interest in cryptocurrencies, I find myself intrigued by the current state of Bitcoin (BTC). The resistance band at $58,000 to $59,000 presents an interesting challenge for BTC. While it has shown resilience in the past, history teaches us that every price level is a new battle to be won. If BTC can punch through this resistance and make it into support, we might just see it regain its bullish momentum.
The price of Bitcoin (BTC) is once again approaching a range of approximately $58,000 to $59,000, which serves as a significant barrier for its potential increase. Will Bitcoin manage to break through this level or encounter rejection at this horizontal resistance point?
Positive CPI data bolsters case for rate cuts
It’s clear that Bitcoin’s value can be affected by changes in global economies. Notably, the annual rate of inflation in the U.S., as indicated by the CPI, was relatively low at 2.5% for the year, with a minor monthly increase of only 0.2% in August.
It appears that the anticipated 0.5 percentage point interest rate reduction, originally scheduled for announcement on September 18th at the Federal Reserve’s FOMC meeting, is now less likely to occur. This is because the CME Fedwatch tool currently predicts only a 13% chance of this happening, while indicating an 87% likelihood of a 0.25 percentage point rate increase instead.
In summary, analysts anticipate a total reduction of 125 percentage points in interest rates by the end of this year. This could lead to an influx of liquidity into the market during the final quarter, potentially benefiting riskier investments such as Bitcoin.
$BTC buying and selling
In terms of Bitcoin transactions, Spot Bitcoin ETFs experienced a withdrawal of approximately $43.9 million in value recently. Yet, this is minimal compared to the massive sell-off of 30,000 Bitcoins, valued at about $1.7 billion, by Bitcoin miners. It’s also important to note that the German government previously sold off around 50,000 Bitcoins.
According to a report by U.Today, the Ali_charts X account shared information about the miner sell-off and it was indeed them who first disclosed this. Furthermore, on September 10th, the same X account revealed that approximately 236,155 Bitcoins, valued at over $14 billion, were removed from exchanges during the last two months.
Can $BTC punch through resistance?
On the short-term Bitcoin (BTC) chart, the price is currently struggling with the $58,000 horizontal barrier. This area serves as a resistance level that extends to around $59,000. If BTC manages to break through this resistance and convert it into support, this would mark a significant initial move towards reclaiming the peak of the bullish flag once more.
$59,000 is crucial resistance on monthly chart
Looking at a broad perspective on the monthly Bitcoin (BTC) chart, it’s evident that the price must surpass $59,000 – a significant level acting both as resistance and support. At present, the price is below this resistance, but with half of the month still remaining, there’s ample opportunity to reach this target.
Looking at the base of the graph, the Relative Strength Index (RSI) is now at a critical juncture. As it moves inside the triangle, this momentum tool may either rise or fall. The closing of this month should reveal which direction it will go.
The RSI is in a down trend, so it is crucial that the indicator line starts to move back up. If it breaks to the upside, the Bitcoin bull market is back on, while if it continues to break down, there is some more trouble ahead.
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2024-09-12 12:02