4 days ago
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- Bitcoin price surged past $60K, driven by institutional buying and whale accumulation.
- A 50 basis point rate cut in September is anticipated, pushing market optimism.
- A potential breakout could boost Bitcoin to $68K, with an all-time high (ATH) on the horizon.
- Resistance remains at $65,800, posing a challenge to upward momentum.
Whale Accumulation Boosts Bitcoin Price Beyond $60K
The Bitcoin price saw a 0.34% increase during Sunday’s trading session, stabilizing above the key psychological level of $60,000. This upward momentum is largely fueled by significant whale accumulation and expectations surrounding a possible 0.5% interest rate cut by the Federal Reserve in September.
Is Bitcoin Headed for a New ATH?
On-chain data reveals that a large Bitcoin whale has been actively accumulating BTC since late August. With 3,933 BTC already acquired, this whale now holds a total of 10,491 BTC, currently valued at around $630 million. This type of accumulation typically precedes bullish price action, as large purchases often drive market confidence.
However, the same whale sold off 7,790 BTC earlier this year, causing a sharp 14% drop in Bitcoin’s price. This raises questions about whether the current buying spree will lead to sustained gains or another pullback.
Institutional Buying Fuels Market Optimism
Microstrategy, a prominent business intelligence firm, has also ramped up its Bitcoin holdings, adding 18,300 BTC worth $1.11 billion. With total holdings now at 244,800 BTC, the company’s investment reinforces market sentiment, especially as institutions continue to view Bitcoin as a reliable store of value.
Fed Rate Cut Could Propel Bitcoin Higher
Speculation is mounting around a potential 50 basis point rate cut by the Federal Reserve at the upcoming FOMC meeting. As inflation cools, many investors are betting on the Fed to ease monetary policy, which would boost capital flow into riskier assets like Bitcoin. A rate cut typically lowers borrowing costs, encouraging further investment in markets like cryptocurrency.
Bitcoin Price Eyes Major Breakout
Currently trading at $60,174, Bitcoin is just 1% shy of breaking a significant downtrend resistance line that has held since late July. A successful breakout could propel the Bitcoin price to $68,000, with a subsequent target set at the all-time high of $73,777.
Resistance Levels to Watch
While a breakout seems imminent, Bitcoin faces notable resistance at $65,800. Over 6.84 million BTC holders are clustered around this level, meaning heavy supply could lead to a consolidation phase if buyers fail to overcome this barrier.
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