Bitcoin[BTC] has surpassed its long-standing moving average, previously acting as a barrier. The upward trend has persisted over the past 24 hours, prompting many investors to question the reasons behind Bitcoin’s current rise.
Breaking Through Resistance
In the most recent trading session, Bitcoin experienced a notable uptick of more than 3%, propelling its value to approximately $65,177.
Presently, the upward trajectory continues, with a modest increase of just under 1%, bringing the price to around $65,400.
The 200-day moving average, formerly a point of resistance, is now transitioning to serve as a new support level—a bullish indicator for the cryptocurrency.
An analysis also indicates that Bitcoin has surged by more than 11% since the start of the month. Despite daily fluctuations, the overall trend remains upward.
Shift in Sentiment Towards Greed
One contributing factor to Bitcoin’s current rise is the shift in market sentiment. BTC has been on an upward trajectory following the announcement of the Federal Reserve’s first interest rate cut in four years.
In addition, the U.S. market eagerly anticipates a speech from Fed Chair Jerome Powell, which could have a substantial impact on BTC and other digital assets.
Data from Coinglass also indicates that Bitcoin’s sentiment index has risen to about 65%, signaling a transition into the “greed” phase. This shift in sentiment is a crucial driver behind Bitcoin’s recent price surge.
Traditionally, September has not been a strong month for BTC, but this year seems to be an exception. The ongoing increase could also be fueled by expectations of a more positive trend typically seen in October.
Decrease in Exchange Holdings
Another factor contributing to Bitcoin’s rise today is the movement of BTC away from exchanges.
Data from CryptoQuant suggests that the exchange netflow has been negative recently, indicating a higher volume of BTC being withdrawn from exchanges rather than deposited. This suggests that holders are inclined to store their assets in private wallets instead of selling them.
A negative netflow during a price surge is typically viewed as a positive sign. It suggests that investors are optimistic about further price appreciation and less likely to sell. This reduced selling pressure can further bolster Bitcoin’s price.
In Summary
The recent surge in Bitcoin prices can be attributed to breaching key resistance levels, changes in market sentiment towards greed, and a growing number of investors moving BTC away from exchanges.
These combined factors explain why Bitcoin is on the rise today and may contribute to sustained upward momentum in the near future.