Bitcoin has seen a significant price surge, breaking through the $60,500 resistance level after the Federal Reserve announced a surprise 0.50% rate cut. This decision has sparked a bullish trend, pushing Bitcoin’s price toward $62,500.
Fibonacci Levels Indicate Strong Support for Bitcoin’s Uptrend
At the time, Bitcoin is moving up, and at the time of writing this, it is trading above $60,500 with the 100-hour simple moving average line. An assessment of the BTC/USD pair indicated that, after a breakdown of an anticipated descending channel with a target of $60K, resistance had been provided at this level. So, if Bitcoin will hold above the $60,500 mark, then the path for further increase should open.
The Fed has ranked among the top drivers of BTC demand since its announcement; BTC has surged by roughly 5%. It has begun rallying above $58,500 and soared beyond the $60,000 barrier. From $60,500, Bitcoin rose to $62,535 before starting to establish consolidation. One day earlier, the price was slightly below $62,000. This is a crucial support level is still strong above the 23.6% Fibonacci retraction level of its recent low at $59,164.
Market Volatility Expected Ahead of US Elections and Fed Meetings
The rate cut by the Fed has been a boost for the cryptocurrencies, and this explains why most of the cryptocurrencies have performed well while traditional stock markets, such as the US markets, have been poor performers. Further, the Fed has its next interest rate meeting on November 8 & December 19, with an estimated reduction of 100 bps in rates. The following meeting falls in the US election days, which in turn is expected to bring uncertainty in the market.
Lastly, Bitcoin and other digital currencies have awakened a new interest after the unexpected rate cut by the Fed, and financial markets may be poised for the next rally. In any case, the market participants are always recommended to be vigilant and careful, especially with these developments.
