Bitcoin has surged over 2.6% in the last 24 hours, trading above $99,000 after the Federal Reserve decided not to cut interest rates. This rise is influenced by concerns over inflation despite economic resilience, according to Fed chair Jerome Powell. Technical analysis suggests a bullish trend but warns of potential retreat if rates remain unchanged. Analysts highlight significant support and resistance levels as Bitcoin nears $100,000.
In a noteworthy development, Bitcoin has surged by more than 2.6% in the last 24 hours, trading at over $99,000, inching closer to the anticipated $100,000 mark. This upward movement can be linked to the Federal Reserve’s decision to maintain its current interest rate policy, which did not meet the expectations set by U.S. President Donald Trump for a reduction to 3.0%.
The Fed’s decision was influenced by ongoing concerns about inflation and unemployment in the economy. Jerome Powell, the Fed chair, acknowledged that while inflation has decreased, it remains above the target threshold of 2%. He reflected on the overall health and resilience of the economy, despite the uncertainty stemming from Trump’s protectionist measures.
Following Powell’s statements, Bitcoin experienced a temporary dip below $96,000 before quickly bouncing back, a sign of its resilience in the face of economic fluctuations. This volatility highlights the market’s ongoing adjustment to external economic pressures, yet Bitcoin’s recovery indicates a degree of stability.
On the technical analysis front, Bitcoin’s trading patterns suggest a bullish trend in the near term. Specifically, it has climbed above $97,200, exceeding significant technical levels like the 100-hour Simple Moving Average. Indicators such as the MACD are showing bullish momentum while the RSI remains above 50, signalling positive upward pressure.
As Bitcoin approaches the psychological milestone of $100,000, market analysts are closely monitoring key support and resistance levels. The immediate support level sits at $98,250, with further support at $99,500 and the prominent $100,000 mark. Conversely, if Bitcoin price retreats, noteworthy support levels include $97,700 and $96,400.
Market dynamics indicate that a possible breakout could propel Bitcoin to revisit its previous high of around $109,000. However, some market analysts warn that without a reduction in interest rates from the Fed, the BTC/USD pair could drop back down to $70,000, creating uncertainty.
Amidst these developments, there’s been a noticeable increase in ETF inflows with strong technical indicators which further hint at potential large-scale movements within the Bitcoin market. The determination of the next major trend will likely hinge on daily closing prices and overall trade volumes.
