Bitcoin Price Surges After Fed Rate Cut: Is This the Start of a New Bull Run?
Bitcoin Price Soars After Fed Rate Cut: Is a New Rally on the Horizon?
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The Bitcoin price has embarked on another upward climb, breaking through the $60,500 resistance level. The recent decision by the Federal Reserve to reduce interest rates by 0.50% has ignited a bullish wave in the cryptocurrency market, propelling BTC towards the $62,500 mark.
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Bitcoin’s momentum is steadily growing, trading above the $60,200 resistance zone and exceeding the 100-hour Simple Moving Average. On the hourly chart of the BTC/USD pair (data feed from Kraken), a decisive break above a short-term declining channel with resistance at $60,000 has been observed. If Bitcoin maintains its position above the $60,500 support zone, it is likely to continue its upward trajectory.
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Bitcoin Price Gains 5% Following Fed’s Surprise Move
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The Bitcoin price has been resilient, holding above the $58,500 level. Following the Fed’s unexpected 0.50% rate cut, BTC established a solid base and launched another surge, breaking through the $60,000 resistance. The cryptocurrency market has clearly responded positively to the Fed’s action.
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Bitcoin decisively moved above the $60,500 level, confirming the strength of the bullish sentiment. The price has since reached the $62,500 resistance zone, where a high was formed at $62,535. Currently, the cryptocurrency is consolidating its gains, experiencing a slight pullback below the $62,000 level.
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The price briefly dipped to test the 23.6% Fibonacci retracement level of the upward move from the $59,164 swing low to the $62,535 high. However, Bitcoin has reclaimed its position above $60,500 and the 100-hour Simple Moving Average.
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Analyzing Potential Resistance and Support Levels
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Looking ahead, Bitcoin might encounter resistance near the $62,200 level. The first major resistance level is anticipated at $62,500. A decisive break above this resistance level could trigger a sustained increase in the coming trading sessions.
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The next key resistance level is projected at $63,200. If Bitcoin successfully closes above this resistance, it could further fuel upward momentum. In this scenario, the price might climb towards the $64,500 resistance level.
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Are Dips Supported in Bitcoin?
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If Bitcoin fails to overcome the $62,500 resistance zone, it could experience a downside correction. Immediate support on the downside is expected near the $61,750 level. The first significant support is positioned at $61,250, followed by another support level near the $60,850 zone, which corresponds to the 50% Fibonacci retracement level of the upward move from the $59,164 swing low to the $62,535 high.
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Should Bitcoin encounter further losses, the price might decline towards the $60,000 support level in the near term.
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Technical Indicators Suggest a Bullish Outlook
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Hourly MACD: The MACD indicator is currently gaining momentum in the bullish zone, suggesting a strong upward trend.
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Hourly RSI (Relative Strength Index): The RSI for BTC/USD is currently above the 50 level, indicating that the cryptocurrency remains in a strong buying position.
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Major Support Levels
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- $61,250
- $60,850
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Major Resistance Levels
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- $62,500
- $63,200
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Overall, Bitcoin’s recent surge, fueled by the Fed’s rate cut, has instilled a bullish sentiment in the market. The cryptocurrency is showing strong momentum, and while there are potential resistance levels ahead, a successful break above these levels could pave the way for further gains.