By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
KriptotekaKriptoteka
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Reading: Bitcoin Surges 22% After Fed Rate Cut, Faces Resistance Risks
Share
Notification Show More
Font ResizerAa
Font ResizerAa
KriptotekaKriptoteka
  • Home
  • News
  • Market
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Kriptoteka > Crypto News > Bitcoin Surges 22% After Fed Rate Cut, Faces Resistance Risks
Crypto News

Bitcoin Surges 22% After Fed Rate Cut, Faces Resistance Risks

marcel.mihalic@gmail.com
Last updated: September 24, 2024 1:31 am
By marcel.mihalic@gmail.com 3 Min Read
Share
SHARE

Bitcoin (BTC), the largest cryptocurrency globally, has surged over 22% in the last fortnight, now trading around $63,200, after experiencing a significant decline to $52,000 on September 6. This marks the highest price BTC has achieved in nearly two months.

Contents
Key Resistance Level at $65,200 AheadWhat Contributed to Bitcoin’s Recent Gains?

Key Resistance Level at $65,200 Ahead

A recent report from the digital asset trading platform Bitfinex states that this price surge was primarily fueled by the Federal Reserve’s (Fed) decision to lower interest rates, helping BTC reach a new local high of $64,200 on September 20.

Despite this upward momentum, Bitcoin remains just below a crucial resistance threshold of $65,200 established on August 25. The report highlights that failing to break this level could validate a concerning trend that has impacted BTC’s price behavior since its all-time high of $73,666 in March.

Since reaching that peak, Bitcoin has consistently struggled to surpass previous highs, instead forming new local lows, indicating a continued downtrend. This pattern of creating progressively lower highs is visible on the daily Bitcoin chart, suggesting a downward path since mid-March.

Bitcoin

The daily BTC/USDT chart above shows that this repetitive price activity has been characterized by a persistent and continuous downtrend since the peak in March.

However, additional volatility caused by macroeconomic concerns led to another decline on August 5, where BTC dropped to its lowest level in six months, plummeting from $70,000 since late July to around $49,000.

What Contributed to Bitcoin’s Recent Gains?

One significant concern raised by Bitfinex is the gap between BTC’s price gains and open interest in the futures markets. As BTC climbed, open interest surged even faster, reaching $19.43 billion—up from $18.93 billion on August 25—while Bitcoin’s price remained approximately $1,000 short of its local high.

This divergence indicates that much of the recent price fluctuation may be driven by speculative trading in futures and perpetual contracts, rather than robust demand in the spot market.

Earlier this month, Bitfinex noted that Bitcoin’s ascent to around $62,000 was primarily supported by strong spot market buying, contrasting with the current market dynamics.

While the increase in open interest might indicate heightened speculative interest in Bitcoin, it does not directly suggest bearish sentiment. The report clarifies that open interest is not a conclusive metric for market leverage; rather, it signifies the total value of outstanding contracts.

Ultimately, the report intimates that this renewed speculative interest could be advantageous as traders return from their summer breaks and reassess their positions following the interest rate cut. Nevertheless, Bitfinex advises that, in the absence of clearer signals of sustained bullish momentum, market participants should approach the situation with caution.

Featured image from DALL-E, chart from TradingView.com

You Might Also Like

Netherlands Introduces Crypto Tax Compliance Aligned with EU

SUI’s RSI Declines: Bearish Signals Suggest More Downside Ahead

$22M Crypto Scam Takes $21.6M from 40,000 Investors

XRP Active Addresses Soar—Is a Market Shift on the Horizon?

Bitcoin’s Capital Inflows Surge: Investors’ Demand Grows Strong

Share This Article
Facebook Twitter Email Print
Previous Article Analyst Sees Bullish Trend for AI Altcoin, Updates on FET and More
Next Article Bitcoin Price Forecast: Can $BTC Break Above $65K Soon?[embed]https://www.youtube.com/watch?v=u5b8wCPFHNM[/embed]
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

FacebookLike
TwitterFollow
YoutubeSubscribe
TelegramFollow
- Advertisement -
Ad image

Latest News

4 Cryptos to Challenge Solana: Potential Growth for Investors
Defi
Bitcoin ETF Inflows Exceed $3B, Demand Reaches 6-Month Peak
ETFs
Japan’s Push for Bitcoin and Ethereum ETFs Gains Momentum
Institutions
Ripple Appeals Court Ruling on XRP’s Institutional Sales
Meme
//

We influence millions of users and is the number one Crypto and Web3 news network on the planet

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
nl Dutchen Englishfr Frenchde Germanel Greekit Italianpt Portugueseru Russianes Spanish
en en
Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Lost your password?