Is Bitcoin Poised for a Major Breakout Beyond $65K?
- Bitcoin hits 25-day high, surging 10.3% amid bullish momentum.
- Fed rate cut and BlackRock’s report drive market optimism.
Bitcoin, the world’s leading cryptocurrency, hit a 25-day high of $64,133, hours ago. It gained 10.3% over the past week as bulls made a comeback. Despite an early-month bearish trend, Bitcoin is now trading at $63,821.27, up 3% in the last 24 hours, though trading volume has decreased by 11%, signaling caution among investors.
The surge in Bitcoin’s price aligns with a broader increase in risk-driven assets following the Federal Reserve’s 50 basis point interest rate cut, marking the Fed’s first easing cycle since 2020. While the cut was welcomed by markets, it also raised concerns over the fragility of the U.S. economy. Fed Chair Jerome Powell addressed these concerns, noting that risks between inflation and a cooling labor market were now balanced.
Meanwhile, adding to Bitcoin’s momentum, BlackRock, the world’s largest asset manager, issued a white paper outlining the cryptocurrency’s potential as a hedge against monetary and geopolitical risks. The report was shared by Bloomberg analyst Eric Balchunas on X (formerly Twitter), shortly before Bitcoin began its rally from a daily low of $59,354.
However, not all data points to sustained bullish sentiment. The Lightning Network, a second-layer Bitcoin scaling solution, has seen a sharp decline in capacity, dropping from 5,308 BTC in July to 1,273 BTC. The number of nodes and channels on the network has also fallen, indicating a drop in user activity.
When BTC Will Past $65K?
Bitcoin’s next resistance levels are at $64,521 and $64,928. A sustained bullish push could see the cryptocurrency break past $65,000, though a bearish reversal could lead to a drop toward $60,366, with support at $59,567. The daily Relative Strength Index (RSI) stands at 63. It indicates an overbought market condition.
As Bitcoin hovers near critical resistance, traders remain on edge, watching closely for signs of continued strength or potential reversals.
