Bitcoin’s Impressive Performance in Recent Days
The crypto market is abuzz as Bitcoin gains over 1% in value within the last 24 hours, currently trading at $117,200. This growth comes amid heightened anticipation for the upcoming Federal Reserve FOMC meeting, where an interest rate cut of at least 25 basis points is expected.
Key Market Indicators
According to CryptoQuant, Bitcoin exchange inflows have dropped to a 7-day average low of 25,000 BTC, a figure not seen in over 18 months. This indicates lower selling pressure, with large holders seemingly content to sit idle rather than sell off their assets. The average deposit size has also halved to 0.57 BTC. This low activity could signify long-term bullish sentiment.
Spot Bitcoin ETFs Show Strong Support
Another encouraging sign for Bitcoin is the performance of spot Bitcoin exchange-traded funds (ETFs) in the U.S., which recorded $2.34 billion in net inflows over the last week. This shows strong institutional interest in the cryptocurrency, adding fuel to its momentum.
Technical Analysis: What Traders Should Watch
The BTC/USD 4-hour chart reflects positive momentum, with indicators like the Moving Average Convergence Divergence (MACD) remaining in the bullish zone since September 6th. The Relative Strength Index (RSI) currently stands at 63, suggesting buying pressure is still dominant. If the bullish trend continues, Bitcoin could aim for the $120K mark, positioning itself to challenge its all-time high of $124,600.
Outlook Based on FOMC Decision
Market analysts agree that a rate cut by the Federal Reserve would likely drive Bitcoin higher, possibly retesting resistance levels at $120K. However, in the event of a correction, the next support level to watch is $114,450, with a potential drop to the $110k range if selling pressure increases.
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Keep a close eye on the Federal Reserve’s announcement for actionable market insights, regardless of whether you’re a long-term investor or day trader in the crypto space.
