Bitcoin (BTC) Ready To Break Past $65,000, On-Chain Data Shows
August 24 2024 - 3:30AM
NEWSBTC
Yesterday, Bitcoin (BTC) spiked over 6% following Federal Reserve
Chairman Jerome Powell’s announcement that they are adjusting its
policy and hinting at a potential 25bps rate cut at the next
meeting on September 18. This unexpected news has fueled Bitcoin’s
recent volatility, with prices swinging unpredictably in the past
weeks. Related Reading: Investors Buying Bitcoin (BTC) Over
Ethereum (ETH): Key Data Reveals Crucial on-chain data from
CryptoQuant is providing 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 Showing Market Optimism Bitcoin is trading above
$63,000 and gaining momentum as it prepares to break past the
critical $65,000 mark. On-chain data from CryptoQuant reveals
growing market optimism, highlighting a significant trend that
could drive prices higher. Specifically, Bitcoin exchange reserves
on centralized exchanges have plummeted to an all-time low. Since
the end of July, the supply of BTC on exchanges has decreased from
over 2.75 million to approximately 2.67 million, representing a 3%
drop in just 30 days. This decline indicates that less BTC is
available for trading on exchanges, which could create a supply
shock, a situation where demand outstrips supply, leading to a
potential price surge. As Bitcoin’s availability on exchanges
diminishes, the likelihood of a price increase grows. With Bitcoin
starting to gain strength, the market is closely monitoring this
trend, potentially pushing 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 Moving Average
(MA). This level is essential for bulls to maintain the uptrend in
a higher time frame. For the price to break past the $65,000 mark,
it must confirm its bullish structure by holding above the $57,500
level. Ideally, staying above the daily 200 Exponential Moving
Average (EMA), which sits at $59,538, is preferable. Related
Reading: Bitcoin Analyst Expects Bulls To Break $74,000 Within Two
Months, History Favors BTC In Q4 2024 These levels are vital for
establishing continued upward momentum. Holding above them would
signal strength in the market, reinforcing confidence among traders
and investors. The data of declining Bitcoin exchange reserves and
the central bank’s policy announcement have been met with optimism.
Investors are increasingly expecting a Bitcoin rally in the coming
months, fueled by these bullish indicators. Cover image from
Dall-E, chart from TradingView.
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024