Bitcoin prices have reached their highest level since late August following the United States Federal Reserve’s 0.5% interest rate cut.
BTC has gained almost 5% over the past 12 hours, topping $62,000 for the first time in more than three weeks.
The asset climbed from an intraday low of $59,200 to tap $62,600 before retreating slightly during the Wednesday morning Asian trading session.
In a post on X on Sept. 19, crypto analyst ‘Nebraskangooner’ called it a breakout targeting the next resistance area at $63,500 to $64,000, where BTC last visited but failed to breach on Aug. 25.
BTC Approaching Resistance
Reflexivity Research co-founder Will Clemente eyed a ‘higher high’ targeting the $65,000 level, which would validate the breakout and larger move to the upside.
Meanwhile, analyst Willy Woo said there were lots of spot BTC being scooped up in the medium term.
“Exchange inventory accounting for derivatives remains flat, but this could change quickly if we get a short squeeze,” he said before adding that the chart pattern is forming a bull flag.
“Current demand and supply is neutral bearish, but signs of moving into a bullish structure if we get some liquidations. Cautiously optimistic.”
Trader “Bluntz” told his 274,000 X followers on Sept. 19 that markets were about to rip in what will be the last macro leg higher before a new all-time high.
The post rate cut pump has been largely predicted but it remains to be seen whether crypto markets can build upon this momentum over the weekend.
Economist Alex Krüger said that historically when the Fed begins its easing cycle with no recession, equities have rallied 10% in six months, while if the central bank begins the cycle in a recession, equities have fallen by 12% before adding:
“This is bullish for bitcoin as well, but its path is heavily dependent on who wins the election.”
Elsewhere on Crypto Markets
Total market capitalization has gained $100 billion since the Fed rate cut decision and has now settled at $2.24 trillion at the time of writing, its highest level since late August.
Ethereum had reclaimed the $2,400 level after a 4.1% gain but was approaching resistance levels. The asset, which has been weak while battling a wave of FUD, still has a long way to go and needs to clear resistance just above $2,500.
The altcoins were predominantly green at the time of writing, with larger gains for Solana (6%), Avalanche (9%), Bitcoin Cash (10%), and Near Protocol with 12% on the day.