Main Points:
- Bitcoin’s daily and weekly charts have turned bullish, indicating a potential positive trend towards the year-end.
- September’s monthly chart shows the possibility of a bullish candle, with Bitcoin recovering above ＄62,029.
- The Federal Reserve (FED) has cut interest rates for the first time in four and a half years, which is expected to have long-term positive effects on Bitcoin prices.
- Bitcoin faces resistance near ＄64,786, which could be a key level for further bullish movement.
September Bitcoin Candlestick Chart: Signs of a Positive Month
In September, Bitcoin’s monthly chart is showing signs of a bullish candle similar to the previous month. After experiencing a dip in August with an 11% decrease, Bitcoin rebounded by about 7% in September, trading back above ＄62,029. This movement signifies a stronger market sentiment, especially since Bitcoin has seen buying pressure anytime it dips below ＄55,137.
As the month-end approaches, if the monthly candlestick remains positive, this will mark the first time since April that Bitcoin prints a bullish monthly candle. The monthly chart also shows Bitcoin nearing the 3-month Exponential Moving Average (3EMA), a significant technical indicator. Should Bitcoin break above this moving average, it could signal a return to a bullish trend, increasing the likelihood of further price increases.
Weekly Chart Breaks Above Moving Averages
Bitcoin’s weekly chart adds further evidence of a potential bullish trend. While the first week of September began negatively, Bitcoin bounced back in the second and third weeks, moving above the 8-week Exponential Moving Average (8EMA). This recovery comes after several weeks of bearish sentiment that dominated late August and early September.
The weekly chart had been below key moving averages since late July, but the recent recovery shows strong buying pressure, with Bitcoin currently trading around ＄63,407. Breaking above these moving averages suggests that the market sentiment has turned more positive, aligning with broader financial trends like the recent FED rate cut.
Daily Chart: Resistance at ＄64,786
On the daily chart, Bitcoin has been steadily rising but faces significant resistance near ＄64,786. Over the past week, Bitcoin recorded six consecutive days of gains, indicating a solid support level around ＄63,407. However, the key to further gains lies in breaking above the ＄64,786 resistance level.
If Bitcoin surpasses this resistance, it could further solidify the long-term bullish trend. Many traders are closely watching this level, as breaking it would likely lead to more buying momentum as we head into the final months of the year. For now, the daily chart remains in a consolidation phase, with traders waiting to see if Bitcoin can push through this important resistance zone.
Impact of FED Rate Cuts on Bitcoin
The Federal Reserve’s recent decision to cut interest rates for the first time in four and a half years is another crucial factor in the Bitcoin market. Historically, lower interest rates have had long-term positive impacts on Bitcoin and other assets like gold. The FED’s move is seen as a response to concerns about economic slowdown, and while the immediate reaction from Bitcoin was muted, past rate cuts have led to stronger upward trends over time.
Looking back at 2019, the last time the FED cut rates, Bitcoin didn’t react strongly at first but eventually entered a powerful upward trend. As global central banks continue to ease monetary policies, Bitcoin could see sustained gains, especially if further rate cuts occur to counter economic weakness.
The price of gold, another key asset during economic downturns, has already risen to an all-time high of $2,600, indicating that safe-haven assets like Bitcoin may also benefit from the current financial environment. Although short-term volatility may persist, especially if economic indicators worsen, Bitcoin is well-positioned for long-term growth.
Bitcoin’s daily and weekly charts are showing strong bullish signals as we move toward the end of the year. The monthly chart suggests a potential shift toward a positive trend, especially if Bitcoin can stay above key moving averages. The recent FED rate cut adds a favorable macroeconomic backdrop, further increasing the likelihood of sustained Bitcoin gains.
However, Bitcoin faces crucial resistance at ＄64,786, and breaking this level will be important for confirming the longer-term bullish trend. Investors should monitor this key resistance and be prepared for potential volatility, especially if economic conditions deteriorate further. Holding funds to buy on potential dips could be a prudent strategy, as the market could react to additional rate cuts or broader financial market movements.
