In a surprising turn of events, Bitcoin (BTC) experienced a significant spike of over 6% following Federal Reserve Chairman Jerome Powell’s recent announcement. Powell hinted at a potential 25bps rate cut at the next meeting on September 18, causing a ripple effect in the cryptocurrency market. This unexpected news has added to Bitcoin’s already volatile nature, with prices fluctuating wildly in recent weeks.
Despite the uncertainty in the market, on-chain data from CryptoQuant is painting a more positive picture. Traders are showing confidence in further price appreciation, as highlighted by the decreasing Bitcoin exchange reserves on centralized exchanges. The supply of BTC on exchanges has decreased by 3% in just 30 days, indicating a potential supply shock that could lead to a price surge. With less Bitcoin available for trading on exchanges, the possibility of a price increase becomes more likely.
Currently trading above $63,000, Bitcoin is gaining momentum and inching closer to the critical $65,000 mark. The cryptocurrency is holding steady above the crucial daily 200 Moving Average (MA), a level that is important for maintaining the uptrend. In order to solidify its bullish structure, Bitcoin must stay above the $57,500 level and ideally remain above the daily 200 Exponential Moving Average (EMA) at $59,538. These levels are essential for sustaining upward momentum and instilling confidence in the market.
After a period of volatility and consolidation, Bitcoin is poised for a potential rally as investors and traders anticipate further price increases. The combination of declining Bitcoin exchange reserves and the central bank’s policy announcement has created an atmosphere of optimism in the market. If the current trends continue, Bitcoin could enter a new phase of bullish momentum in the coming months.
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