Bitcoin reaches $64,041.41, marking a 7.46% increase in the last 7 days but a slight drop of 0.13% in the last 24 hours and as of writing. Its current market cap stands at $1.26 trillion while its 24-hour trading volume stands at $20.4 billion. The recent boost is due to Powell’s speech on August 23rd, which indicated that the Fed may lower rates at its September meeting.
Powell’s remarks were in line with expectations, as the indicator of the federal interest rate has stood at 80% of rate cuts for three weeks. This was supported by weaker-than-forecasted US employment data, which set up a September 18th meeting between Federal Reserve policymakers.
However, cryptocurrency enthusiasts must exercise caution regarding this news. Often when events are fully priced-in there is an expectation of “sell-the-news” circumstances that arise from it based on historical patterns. For example, after halving Bitcoin fall by 10%, and double-digit drops occurred in Ethereum after approval for an SEC ETFs.
Interestingly enough, low-risk money market funds continue to see significant inflows despite their expectations for rate cuts. In only two weeks during early August over $90bn flowed into these funds which now total $6.2tn. This contradicts the idea that investors would move into riskier assets like cryptocurrencies once interest rates fell quickly.
Bitcoin’s technicals are painting a picture that can be cautiously viewed as positive. At the moment it is testing a critical bullish flag pattern while there is a key resistance at $68,000 ahead of it. Once this level is broken and closed above successfully, it is likely to confirm an uptrend and serve as a catalyst for a big rally.
The chart on weekly basis shows good signs with Bitcoin having recorded 9.5 % gain this current week so far. Should this momentum continue, then BTC will probably break out beyond bullish flag resistance this coming week. The RSI on the Weekly timeframe currently sits at 54 showing possible further upward moves.
On the weekly chart ,the MACD indicator has nearly reached a bullish crossover. However, it still remains only slightly bearish with signal line located below MACD line and histogram in negative territory.
According to crypto analyst Ali who recently highlighted MVRV Pricing Bands’ importance at $67,300 breaking this could make way for Bitcoin to reach $80,500. Also he said another important sign of bull market in Bitcoin would be golden cross between MVRV Ratio and its 365-day Simple Moving Average.
As the crypto market navigates these exciting developments, be cautious of market volatility. Yet, there is still possible room for more gain as Bitcoin’s short term price action will depend on how macroeconomic forces interact with technical indicators and market sentiment.