Following the bullish momentum after the recent interest rate cuts by the US Federal Reserve, Bitcoin’s price is now being propelled by market bulls to target the much-anticipated $70,000 mark. Analysts expect the apex cryptocurrency to experience a price breakout as early as next week as it fast approaches key resistance levels.
Technical Analysis Suggests Bitcoin’s Price Could Cross $70,000 Before October
Bitcoin’s price gained significant traction following the Federal Reserve’s decision to cut rates by 50 basis points on September 18. The massive rate cut boosted investors’ confidence in risk assets like cryptocurrencies, driving BTC to break out of the $60,000 level. This was accompanied by a stronger trading volume, signaling that investors are ready to push the prices much higher.
However, Bitcoin still faces short-term resistance between the $62,600 and $64,000 range. This is a key Fibonacci retracement level from last month’s price recovery. If BTC manages to break through this resistance, then it could test the $65,950 level. A clean break above this price point could open the way for Bitcoin to surge toward the coveted $70,000 and beyond.
On the flip-side, if Bitcoin fails to hold on to the $63,600 resistance, there could be a potential pullback testing support between $60,700 and $61,200. It will be crucial for BTC to hold this support to maintain the bullish trend, while a failure would trigger a deeper price correction that could bring its price down to the $58,300 range.
The short-term exponential moving average (EMA) shows a bullish crossover, suggesting that Bitcoin could challenge the $69,270 resistance level, which is the last hurdle before it hits $70,000.
Fed Rate Cuts And Institutional Interest Driving Bitcoin’s Price To The Upside
The Federal Reserve’s latest rate cut has bolstered investor confidence. It also signals a more dovish monetary policy, which has historically benefited risk assets. With inflation concerns continuing to affect traditional markets, many have turned towards Bitcoin as a hedge.
Additionally, institutional interest in Bitcoin remains high, which was evidenced by the increased inflows to the spot Bitcoin exchange-traded funds (ETFs). On Monday, the US spot Bitcoin ETFs recorded a net inflow of $4.56 million, with significant contributions coming from Fidelity’s FBTC and BlackRock’s IBIT, which added $24.93 million and $11.54 million to the market, respectively.
However, an outflow of $40.33 million from Grayscale’s GBTC Bitcoin ETF reflected mixed sentiment within the market.
On the broader side, miners will potentially have the biggest impact on Bitcoin’s price in its pursuit to the $70,000 mark. According to Illiya Kalchev, an analyst at Nexo, miner revenues remain at multi-year lows, which creates the potential for price appreciation as they start distributing Bitcoin at higher prices to sustain their expensive operations.
Bitcoin’s open interest (OI) is at over $25 billion, indicating that traders could be the primary drivers of the asset’s short-term moves to the upside.
MicroStrategy Adds $458 Million Worth of Bitcoin To Balance Sheet
Meanwhile, on September 20, MircoStrategy announced it had completed its $1 billion convertible senior notes offering. The company has previously planned to use the proceeds to buy more Bitcoin.
Hours later, the company’s founder and chairman, Michael Saylor, confirmed the purchase of over $458 million worth of Bitcoin. According to the details filed with the US Securities and Exchange Commission (SEC), MicroStrategy acquired the tokens at an average price of $61,750 per BTC.
The latest purchase brings MicroStrategy’s total Bitcoin holdings to 252,220 BTC, worth around $16.01 billion. The business intelligence firm has spent approximately $9.9 billion since its first acquired Bitcoin to its balance sheet in August 2020. MicroStrategy’s unrealized profits from its Bitcoin pool stand at over $5.9 billion. Recently, Saylor disclosed that he has $1 billion in personal BTC holdings.
At the time of writing, Bitcoin (BTC) is trading at $63,795 – up 0.79% in the last 24 hours.
Rekt Capital Analysts Predict A Price Breakout For Bitcoin In The Coming Days
