Bitcoin Price Reclaims $62K as Analysts Eye Upside Breakout
Bitcoin prices have risen to their highest level since late August, following the US Federal Reserve’s 0.5% interest rate drop. Bitcoin has risen about 5% in the last 12 hours, surpassing $62,000 for the first time in more than three weeks.
The asset rose from an intraday low of $59,200 to $62,600 before falling marginally during the Wednesday morning Asian trading session. In a post on X on September 19, crypto analyst ‘Nebraskangooner’ described it as a breakout aimed at the next resistance level of $63,500 to $64,000, which BTC last visited but failed to breach on August 25.
BTC Approaching Resistance
Will Clemente, co-founder of Reflexivity Research, was looking for a ‘higher high’ above $65,000 to validate the breakout and a wider move to the upside. Meanwhile, expert Willy Woo stated that there were a lot of spot BTC being bought up in the medium term.
“Exchange inventory accounting for derivatives remains flat, but this could change quickly if we get a short squeeze,” he said, adding that the chart pattern is developing a bull flag.
“Current demand and supply are neutrally negative, but there are hints of a shift towards a bullish structure if we see significant liquidations. “I’m cautiously optimistic.”
Trader “Bluntz” advised his 274,000 X followers on September 19 that markets were about to rip in what would be the final macro leg higher before a new all-time high. The post-rate drop rally was widely expected, but it remains to be seen whether crypto markets can continue on this momentum over the weekend.
Economist Alex Krüger stated that historically, when the Fed begins its easing cycle without a recession, equities have rallied 10% in six months, whereas when the central bank begins the cycle in a recession, equities have fallen by 12%, before adding: “This is bullish for bitcoin as well, but its path is heavily dependent on who wins the election.”
Elsewhere on Crypto Markets
Since the Fed’s rate decrease announcement, total market capitalization has increased by $100 billion, reaching $2.24 trillion at the time of writing, its highest level since late August.
Ethereum has recaptured the $2,400 mark with a 4.1% increase, but it was approaching barrier levels. The asset, which has been weak while fighting a wave of FUD, still has a long way to go and must overcome resistance of just around $2,500. At the time of writing, the altcoins were mostly green, with Solana up 6%, Avalanche up 9%, Bitcoin Cash up 10%, and Near Protocol up 12% for the day.
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