Bitcoin Price Analysis: BTC Targets New Highs as Fed Rate Uncertainty Disappears

Bitcoin’s value is shortly recovering and paving its manner towards a brand new all-time high after the Federal Reserve cuts rates of interest by 1 / 4 level and indicators there are nonetheless extra to return within the upcoming yr. Therefore, buyers’ fears are alleviated, and the market is more likely to rally additional within the coming weeks.

By Shayan

The Daily Chart

Bitcoin’s every day chart demonstrates a transparent bounce from the $107K demand zone and an increase again above the 100-day shifting common, positioned across the $113K mark. After yesterday’s Fed price minimize, the asset is continuous its path towards the $124K provide zone, which aligns with the present BTC all-time high.

The RSI can also be trending above the 50% stage, indicating that the momentum has now shifted bullish as soon as once more. All these indicators level to a possible continuation towards the $124K ATH and sure an extra rally towards $130K and even larger.

The 4-Hour Chart

As the 4-hour chart demonstrates, Bitcoin’s current rally has occurred after the worth efficiently broke out of a descending channel, following a swift double backside rebound on the $108K provide zone.

The asset has now swept the liquidity pool above the earlier $107K high, which might result in two potential situations. The market can both stick with it with the uptrend and assault the $124K space as soon as once more, or it could actually pull again no less than to the $112K order block, which is essentially the most notable demand zone close by. Yet, with the RSI nonetheless under the overbought area, the worth seemingly has extra room to develop earlier than a correction happens.

Sentiment Analysis

Open Interest

This chart shows the Bitcoin combination open curiosity, which reveals the variety of open perpetual futures positions. Typically, throughout bullish market circumstances, this metric climbs larger or consolidates, as increasingly more merchants are taking leveraged positions. This is strictly what will be seen on the chart.

Meanwhile, one other fascinating remark is that even with the market going by a short-term correction just a few weeks in the past, the open curiosity has but to drop. While that is typically a bullish signal, it additionally factors to the truth that the futures market may nonetheless be overheated. Therefore, there’s nonetheless the chance for a liquidation cascade to occur within the quick time period, which might trigger a flash crash earlier than the market stabilizes once more.

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