The demand for Bitcoin has gradually increased in the recent past as shown by the U.S. spot BTC ETFs in the past two weeks and multi-year low in CEXs supply.
Bitcoin BTC $87 410 24h volatility: 3.7% Market cap: $1.73 T Vol. 24h: $18.60 B price rallied nearly 3 percent in the past 24 hours to reach a range high of about $62,508 before retracing towards $62,138 on Thursday during the mid-London session. Consequently, the flagship coin has closed the past two days above the 50-day Moving Average (MA) and rebounded above the 50 percent level on the Relative Strength Index (RSI).
Despite the daily death-cross between the 50 and 200 MAs, Bitcoin price has established a robust support level above $53,697 since early July, resulting in a triple bottom and a bullish divergence on the daily RSI.
With the fourth quarter on the horizon, which is characterized by a bullish crypto outlook, Bitcoin price will likely pump towards a new all-time high before the end of this year.
Top Reasons Why Bitcoin Price Pumped Today
The main reason why Bitcoin price rallied in the past 24 hours was the Federal Funds Rate cut, thereby kickstarting the quantitative easing cycle. Notably, the Federal Reserve cut its benchmark interest rate by 50 bps, whereas the Wall Street analysts expected a reduction of 25 bps.
As a result, the United States now joined the European Central Bank (ECB) and the Bank of Canada in boosting their respective economies with lower interest rates.
With Gold Price already in the price discovery phase, BTC price is expected to lead the altcoin industry in a major bullish recovery in the near term. Furthermore, there is a correlation between Gold and Bitcoin prices in the past years due to their common use as safe havens.
Gold is trying to tell us something pic.twitter.com/T0iQ94Xm3d
— Charles Edwards (@caprioleio) September 18, 2024
Meanwhile, the supply of Bitcoin on centralized exchanges has remained at a multi-year low of about 2.35 million, down from over 2.7 million at the beginning of this year. The notable decline is largely attributed to the high demand from institutional investors and the US spot Bitcoin ETFs.
For instance, MicroStrategy Inc (NASDAQ: MSTR) announced on Wednesday that it intends to raise over $800 million in the coming days to purchase more Bitcoins. Currently, MicroStrategy owns over 244.8k Bitcoins, which account for more than 1 percent.
In the past two weeks, the US spot Bitcoin ETFs have registered a net cash inflow of more than $540 million. As a result, the fear of further crypto capitulation has significantly declined, with Bitcoin’s fear and greed index having spiked to about 49 percent, neutral, from 33 percent, fear, earlier this week.
What Next?
From a technical standpoint, Bitcoin price is on the path of retesting its all-time high in the near term if the bulls remain in control. However, the flagship coin must consistently close above $62k in the coming days to guarantee a rally towards $68k.
$BTC bulls have Successfully Reclaimed the 60k Resistance area once again.
Now, it's Expected that Bitcoin will test the 68k Resistance area in the coming days. 📈#Crypto #Bitcoin #BTC pic.twitter.com/7LT4VL67lZ
— Captain Faibik 🐺 (@CryptoFaibik) September 19, 2024
If the bulls fail to defend the current rising trend, the flagship coin could retrace towards $54k before rebounding in the fourth quarter.
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