Bitcoin experienced a significant surge of over 6% in its value yesterday after Federal Reserve Chairman Jerome Powell hinted at a potential 25bps rate cut at the upcoming meeting on September 18. This unexpected news has added to Bitcoin’s recent volatility, with prices fluctuating unpredictably in recent weeks.
Despite the market’s unpredictability, crucial on-chain data from CryptoQuant is pointing towards a potential price appreciation. The data suggests that traders are positioning themselves for further price gains. As market participants digest the Fed’s new policy stance, all eyes are on Bitcoin to see if this could mark the beginning of a new bullish phase.
One significant trend highlighted by CryptoQuant’s data is the decreasing Bitcoin exchange reserves on centralized exchanges, hitting an all-time low. The supply of BTC on exchanges has dropped from over 2.75 million to around 2.67 million in just 30 days, signaling a 3% decline. This reduction indicates a shortage of BTC available for trading on exchanges, potentially setting the stage for a supply shock scenario where demand surpasses supply, leading to a potential price surge.
Bitcoin Bulls Eyeing $65,000 Mark
Currently trading above $63,000, Bitcoin is gaining momentum and aiming to break through the critical $65,000 level. The market is closely monitoring this upward momentum, which, if sustained, could push Bitcoin into new bullish territory. Despite recent volatility and consolidation, Bitcoin is holding above the crucial daily 200 Moving Average (MA), a key level for maintaining the uptrend in the higher time frame.
For Bitcoin to surpass the $65,000 mark, it must confirm its bullish structure by holding above the $57,500 level. Ideally, remaining above the daily 200 Exponential Moving Average (EMA) at $59,538 is preferred to establish continued upward momentum. Holding above these levels would signal market strength, instilling confidence among traders and investors.
The combination of declining Bitcoin exchange reserves and the Federal Reserve’s policy adjustment announcement has sparked optimism among investors. Many are anticipating a potential Bitcoin rally in the upcoming months, driven by these promising indicators.