Bitcoin started trading on September 17 at $58,208. A slight decline to $57k heightened fears of a continuation of the previous three-day decline, which saw it lose over 4%. The decline started shortly after it peaked at $60,551.
The previous day took a good turn as it rebounded and surged. It broke the $60k resistance and advanced upward, retaking $61k. BTC peaked at $61,331 as it gradually lost momentum, halting its attempt at $62k. Nonetheless, it ended the day above $60k amidst a minor correction and registered a gain of almost 4%.
The market continues to anticipate a rate cut that may take place today. The previous day’s hike was due to the impending FOMC meeting. Most crypto analysts are bullish that the interest rate cut is likely, and the announcement will spark several bullish runs across the market.
On the other hand, some analysts argue the price correlation between the S&P 500 and Bitcoin was responsible for the notable increases. The instrument climbed to a new all-time high during the previous intraday session, hitting 5,670. The latest surge marks a 10% positive change from August’s low and over 20% increase since the start of 2024.
The recent milestone in the traditional stock was due to improvements in the valuation of several large stocks listed on the United States Stock Exchange.
In both cases, thriving confidence in the crypto market and macroeconomy played a massive role in the latest surge.
On-chain Data is Not so Bullish
Bitcoin saw an over 40% increase in trading volume over the last 24 hours. While volume is gradually returning to the market, so are the buyers. An indication of this trend is that the Coinbase premium is positive. It shows that traders from the US have resumed stocking up on the apex coin; hence, it saw significant funding from that region.
ETFs are also experiencing significant buying pressure. Reports suggest over $140 million poured into crypto products in the last 24 hours, marking the fourth day of consecutive inflow.
Both highlighted metrics are negative in reaction to the outcome of the FOMC meeting. The rate cut finally happened, but the market is filled with uncertainty as most traders are skeptical about how macroeconomics will respond.
Some analysts predict that the market will see a significant downtrend following the meeting. The reason for the downturn is unclear as the regulators announced what many market watchers speculated would happen. Nonetheless, whether the FOMC was good or bad remains to be seen.
To allay the fears of a possible decline in the value of some significant stocks, the Federal Reserve chairperson mentioned that he is not seeing any indications of an impending recession as there is “growth at a solid rate. You see inflation coming down. You see a labor market that’s still at very solid levels. So, I don’t really see that now.”
Bitcoin is at a Crossroads
Bitcoin is printing a doji on the one-day chart, indicating that buyers and sellers are unable to hold onto previous gains.
Nonetheless, indicators are still bullish amidst this trend. The moving average convergence divergence still prints buy signals as the 12-day EMA maintains its upward trajectory. It also maintains trading above its pivot point.
The apex coin will flip $62k in the coming days if the bulls shun the bearish sentiment in other sectors. It will attempt $64k but may retrace back to $63k.
On the other hand, it is worth noting that several price swings affecting BTC were due to its price correlation with the S&P 500. With the analyst’s predictions in view, the largest cryptocurrency will retraced as this instrument. The apex coin may drop to $58k or lower if this happens.
