Bitcoin (BTC) continues its advance and is now trading around the $63,000 mark. This is just a few percent below the key resistance of $65,000. Breaking this barrier could end the downward trend that has been going on since March and possibly mark the start of a new bull market.
This level is seen as a critical resistance that, if broken, could open the doors for further price increases towards a new all-time high.
Impact of interest rate cut on the market
Bitcoin’s recent price rise was fueled in part by a surprise 0.5% rate cut by the U.S. central bank. This is the biggest cut in four years and came as a surprise, as many analysts had only expected a 0.25% cut.
The Federal Reserve’s move underscores concerns about the state of the U.S. economy, despite reassuring statements from Chairman Jerome Powell. Lower interest rates could lead to increased liquidity in the market, which would benefit risk assets like Bitcoin.
Key Resistance: $65,000
The $65,000 mark is a crucial level that Bitcoin has been unable to break since late August. Reaching this mark would mark the first higher peak in over six months, ending the long-term downtrend and potentially ushering in a new phase of growth. A break above this level could further boost investor confidence and pave the way for a sustained bullish trend.
Risk of relapse remains
Despite the positive market conditions, there remains a risk of a pullback if Bitcoin fails to break above the $65,000 level. A failed attempt to stay above this level could result in a correction towards $55,000, especially if bears regain the upper hand. The market remains volatile and previous similar situations have shown that rapidly rising prices can also correct quickly. Traders should remain alert and be aware of possible strong price movements in both directions.
Bitcoin Outlook
The combination of falling interest rates and the ongoing economic uncertainty creates a positive climate for Bitcoin. The coming days will be crucial for the further development of the price. If the $65,000 mark is broken, this could lead to a new high.
However, if Bitcoin fails at this level, it could result in a significant pullback. The coming weeks will show whether the bulls remain in control or whether a correction is inevitable.
Source: https://newsbit.nl/bitcoin-koers-op-kruispunt-doorbraak-naar-65-000-of-daling-naar-55-000/
