Recently, Bitcoin's value saw a significant increase, hitting $63,000 after the US Federal Reserve's much-awaited policy shift. On September 18, America's central bank reduced interest rates for the first time in years, lowering borrowing costs and potentially enhancing investor interest in riskier assets like Bitcoin.
Whale Interest in Bitcoin Increases
Bitcoin price has seen a surge in short liquidation for over the past few hours as BTC moved above $63K following Fed’s interest rate decision. According to Coinglass data, Bitcoin witnessed a total liquidation of nearly $84 million, out of which sellers liquidated around $71 million worth of positions. IntoTheBlock reports indicate that nearly 88% of Bitcoin holders are currently in profit, with 12% breaking even. Notably, none of the investors are experiencing losses at present. Further data from IntoTheBlock reveals that 71% of Bitcoin investors are long-term participants, having joined the ecosystem more than 12 months ago. Another 25% entered within the last year, and just 5% joined in the past 30 days. Additionally, the recent surge in Bitcoin price has attracted substantial investment from whales. IntoTheBlock states that the number of large transactions surged from the low of 12.5K to 16.5K. This might strengthen the support levels of Bitcoin, creating possibilities of a recovery above $70K this month. Recently, the supply of Bitcoin held by short-term holders (STHs), those who bought within the last 155 days, dropped significantly. This group and long-term holders (LTHs) make up the main investor types. As STHs hold their coins longer, surpassing 155 days, they become LTHs, showing a shift towards longer-term holding. This trend, with a 15% decrease in STH supply—the biggest since 2012—suggests a positive outlook for Bitcoin's stability.
Current Bitcoin Market Trends
Bitcoin's recent movements have formed a bullish pattern as buyers successfully pushed the price above immediate resistance channels. Buyers broke the prolonged bearish consolidation around $60K as the BTC price formed a high near the $63.5K mark. As of writing, Bitcoin trades at $63,334, surging over 5.4% in the last 24 hours. The price has surged above 23.6% Fib level and is holding well above the EMA20 trend line, aiming to meet bullish goals. The current level is crucial for the bulls to hold, as falling below it could lead to the retest of $61K support level. As the RSI level now hovers around the overbought region at level 71, Bitcoin price might soon trigger a minor correction. If the price continues to hold above back from the 20-day EMA, it could set the stage for a push above $65,000. Such a move might initiate a recovery toward $68,000 and potentially extend to $70,000.
Bitcoin Price Forecast
Future movements in Bitcoin could determine the further trajectory of the cryptocurrency. Successful attempts to hold above support levels and break through critical resistance levels could lead to a continuation of the current bullish trend. However, analysts do not rule out the possibility of short-term corrections, given the high volatility in the cryptocurrency market.
The sharp rise in Bitcoin's value after the Fed's rate reduction indicates increased investor interest in cryptocurrencies. Considering current trends and analyst data, further fluctuations in Bitcoin's price can be expected in the coming days and weeks.
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