With the interest rate cut in the United States last week, Bitcoin (BTC) has experienced a rebound. However, at the moment, it has not managed to break through a key technical zone, which is crucial for the increase to continue.
“BTC remains below the critical high of August 25 at USD 65,200,” it highlights in a report the Bitfinex crypto exchange. While it has come close to the level seen a month ago, it is still in a lower range, as shown by the orange line in the following chart.
“This is significant because if BTC fails to break above this level, it will confirm the pattern we have seen since the all-time high of $73,666 in March,” the exchange adds. It specifies that since the new price record recorded six months ago, bitcoin has formed increasingly lower highsmaintaining a downward trend. This can be seen in the blue line of the graph above.
Bitfinex therefore believes that Bitcoin needs to break above $65,200 to break out of this downward structure. It should be noted, however, that prices vary on each exchange, so it should not be considered exact. However, in general, the latest high on the various platforms has been in the range of $65,000.
In this sense, if the prices of various exchanges are taken into consideration, Bitcoin should break above the USD 65,000 range to break the downtrend.
For Bitfinex, bitcoin will remain in a tight price range
Bitcoin spot market purchases have slowed down, which explains why the price has remained around $63,000 over the past six days. Given this scenario, Bitfinex expects the price to continue moving in a tight range in the short term.
However, the exchange emphasizes that exchange-traded funds (ETF) of bitcoin have had sustained capital inflowswhich if it continues could lead to further volatility. “This suggests that a further rally is possible, especially if traditional financial markets such as the S&P 500 continue to rise,” he says.
The following chart, provided by SosoValue, shows the net inflows and outflows of capital from bitcoin ETFs, day by day since their launch:
Against this backdrop, it becomes even more important for the currency to break its downward trend. “If Bitcoin breaks through key resistance levels from late August, this could propel the asset to new highs, coinciding with the end of the summer’s low liquidity,” Bitfinex concludes.
As CriptoNoticias reported, summer in the northern hemisphere is a season in which markets tend to fall due to vacations that disrupt the economic industry. Therefore, with its end last week and the interest rate cut in the United States that increases liquidity, Bitcoin market expectations improve towards the end of the year.
