Bitcoin’s (BTC) trading volume has dipped 14% in the past 24H.
BTC price hovers above the 9-day EMA, reinforcing short-term bullish sentiment.
The impact of Mt.Gox extending its repayment deadline on the BTC price is subject to speculation.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, has been generating both hope and fear within the community due to its recent price movements. On Monday, Bitcoin demonstrated a bullish momentum with its foray into the $27,000 range. However, bears instilled fear, when BTC quivered and fluctuated between $26,864 and $27,290.
Despite high expectations, the recent Federal Reserve meeting held on Wednesday had a minimal impact on Bitcoin’s price. Earlier this year, Federal Reserve Chair Jerome Powell indicated that the country might see only two more interest rate hikes by the end of 2023. The previous meeting of the Federal Open Market Committee (FOMC) resulted in the first of these two interest rate increases. Following the recent FOMC meeting, the target interest rate remains at 5.25% – 5.50%, aligning with global market expectations. However, it’s worth noting that this interest rate is the highest it has been in 22 years.
Meanwhile, as a bullish hope to the community, prominent financial advisors like Robert Kiyosaki continue to emphasize the importance of acquiring assets like gold, silver, and Bitcoin today rather than fixating on their future prices. Kiyosaki also recently made bold predictions, suggesting that Bitcoin could potentially reach $120,000 by next year and an even more striking projection of $500,000 per BTC by 2025.
Furthermore, the crypto market diverts its major attention to observing the impacts of Mt.Gox creditors’ recent actions on Bitcoin. The memory of the 850,000 BTC hack in 2014 on Mt.Gox could never fade away. The defunct crypto exchange has now extended the repayment date to October 31, 2024 — an additional 12 months. This raises high speculations among investors.
Will Bitcoin Bears Lose Their Strength?
A closer look at Bitcoin’s recent price movements reveals an underlying bullish trend on the daily chart. Notably, the 9-day exponential moving average (EMA) was recorded below the trading price at $26745, further emphasizing the bullish sentiment. The daily relative strength index (RSI) stands at 56, indicating a neutral position. However, trading volume has decreased by 14% in the last 24 hours, resting at $12 billion.
Bitcoin (BTC) Daily Price Chart (Source: TradingView)
If the price manages to break through the $28,000 resistance level, BTC could test the $31,480 resistance. Conversely, a drop below the $26,370 support level might see Bitcoin testing the critical $25,000 level.