Yesterday, bitcoin (btc) surged over 6% following Federal Reserve Chairman Jerome Powell’s announcement that they are tightening their policy and hinting at a possible 25 basis point rate cut at the upcoming meeting on September 18. This unexpected news has fueled bitcoin’s recent volatility, with prices swinging unpredictably over the past few weeks.
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CryptoQuant’s crucial on-chain data provides a glimmer of optimism. According to the data, traders are positioning for further price appreciation.
As the market digests the Fed's new stance, all eyes are on bitcoin to see if this could mark the beginning of a new bullish phase.
bitcoin data shows optimism in the market
bitcoin is trading above $63,000 and is gaining momentum as it prepares to break the critical $65,000 mark.
CryptoQuant on-chain data reveals growing market optimism, highlighting a significant trend that could push prices higher. Specifically, btc/chart/exchange-flows/exchange-reserve?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=line” target=”_blank” rel=”nofollow”>bitcoin Exchange Reserves On centralized exchanges, prices have plummeted to an all-time low. Since the end of July, the btc supply on exchanges has decreased from over 2.75 million to about 2.67 million, representing a 3% drop in just 30 days.
This drop indicates that there is less btc available to trade on exchanges, which could create a supply shock – a situation where demand outstrips supply, leading to a potential price surge. As the availability of bitcoin on exchanges decreases, the likelihood of a price surge increases.
As bitcoin begins to gain traction, the market is closely following this trend, which could propel bitcoin into new bullish territory.
btc Price Action: $65,000 Next?
After two weeks of volatility and consolidation, bitcoin is currently trading at $64,100 at the time of writing, holding above the crucial daily 200 level. Moving Average (MA).
This level is essential for the bulls to maintain the uptrend on a higher time frame. For the price to break above the $65,000 mark, it must confirm its bullish structure by holding above the $57,500 level. The ideal is to stay above the 200-day daily exponential moving average (EMA), which is located at $59,538.
These levels are vital to establishing continued bullish momentum. Holding above them would signal strength in the market, reinforcing confidence among traders and investors. Data on declining bitcoin reserves on exchanges and the central bank's policy announcement have been met with optimism. Investors are increasingly expecting a bitcoin rally in the coming months, driven by these bullish indicators.
Cover image by Dall-E, chart by TradingView.
