Bitcoin has surged to $64,173.35, a rise of 5.56% in the last 24 hours. This spike follows remarks by Federal Reserve Chair Jerome Powell suggesting the possibility of easing monetary policy. In low-interest-rate markets historically, BTC and the whole of crypto surged.
BTC now stands at $1.2 billion market cap. Trading volume is also higher in the last 24 hours, with an increase of 69.97% to $42.8 billion.
Powell's speech highlighted a cooling labor market and less tight economic conditions compared to pre-pandemic levels, indicating that the time has come for policy to adjust. This sentiment has flashed optimism in the crypto market, with many tokens in the top 50 posting considerable gains. Ethereum, the king of altcoins is backing up Bitcoin's trajectory with a similar 3% daily increase as of writing.
Historical patterns support this bullish outlook. During the 2017 crypto bull run and ICO boom, interest rates hovered between 0.75% and 1.25%. Similarly, the 2020-2021 bull cycle coincided with near-zero interest rates, resulting in Bitcoin's value skyrocketing by over 1,000% within a year.
Currently Bitcoin’s price action seems to be forming a bullish flag pattern with another resistance and target level near $68k. A breakout above this could confirm further upside momentum for it. Meanwhile, on the daily chart MACD indicator made a bullish crossover where signal line lies down below the MACD line while positive histogram lies above zero mark.
RSI on the daily timeframe is reading at around 58 denoting bullish trend backed with more room to surge further, thus corresponding generally uptrend market outlook.
Recent price movements have respected historical patterns, including the formation of weekly bullish hammers that have consistently led to price surges as analyzed in our previous report. The golden cross is also seen forming, which previously pushed Bitcoin from $59k to $70k within two weeks only in the last time it happened.
Notably, Bitcoin’s pattern shows similarities with gold as both exhibit a bullish flag formation in our previous report. In this context, numerous analysts are speculating that bitcoin may follow suit now that gold has recently broken out on the upside.
The increasing market cap for stablecoins further reinforces the bull case as this shows greater demand in the crypto ecosystem. We keep a close eye on what Bitcoin will do next after Powell’s remarks and whether monetary policy may become even more lenient on it.