Despite a dismal weekend and a negative start to the week, BTC prices unexpectedly recovered with increased trading volume. Noting this recovery, Bitcoin ETFs and excitement ahead of the FOMC meeting have fueled positive sentiment in the community.
With $60K reclaimed, can Bitcoin sustain its bullish momentum this week on the possibility of a rate cut? However, will the $54K support hold if the FOMC doesn’t agree? Let’s find out.
Bitcoin Price Performance
Bitcoin rallied 3.61% in a bullish engulfing candle on Tuesday, paring a three-day decline and delaying the death cross between the 50- and 200-day EMAs.
However, the rejection at the highs led to a close at $60,316. Currently, BTC price is struggling to maintain its position above $61,000 as a small doji candlestick forms.
The recent rebound from $54,000 has resulted in a 12.26% gain over the past 11 days. Once the rally clears the 23.60% Fibonacci level and the two moving averages, the upside is likely to reach $63,847 or the 50% Fibonacci level.
BTC price is currently trading at $60,227.88 with a gain of 2.98% on the day. Yesterday, BTC price peaked at $61,331. However, with the FOMC meeting taking place today, speculations in the crypto market are on the rise.
Bitcoin ETFs Support the Uptrend
Bitcoin Spot ETFs continue to rally and mark their fourth consecutive day of inflows. As market sentiment improves, US-based Bitcoin Spot funds saw net inflows of $187 million, maintaining a four-day streak of growth on September 17.
While Grayscale’s GBTC recorded no outflows, Fidelity’s FBTC saw inflows of $56.6 million, and Bitwise’s BITB recorded $45.4 million. Currently, the total net assets of the ETFs are worth $54.84 billion.
Will BTC Price Hit $66K?
BTC prices are expected to rise on the possibility of a rate cut amid speculations supporting a prolonged bull cycle. Moreover, the positive sentiment is increasing as 65% of market participants predict a 500 basis point rate cut.
Lower interest rates make lending easier and attract capital into riskier assets like Bitcoin. Bitcoin has rallied nearly 10% this year, buoyed by global market factors. A 10% jump from its current market price could challenge resistance near $66,000.
The RSI is currently above the 50% level, and the 14-day SMA maintains an uptrend. Therefore, the momentum indicator reflects increasing bullish strength and increasing upside potential.
On the other hand, if the FOMC meeting decides to keep the current interest rates unchanged or, in the unlikely event, raise them, BTC price could return to the $54,000 support level and, in extreme cases, could break the $50,000 support level near the downside resistance.
Are you curious if Bitcoin will end 2024 on a bullish note to hit $100,000 after the September rate cut? Find out now in our BTC price prediction for 2024 and beyond at Coinpedia!
