Story Highlights
Bitcoin price has been recovering but faces strong resistance at $64K. On-chain data suggests potential for a rally as miners reduce selling pressure.
Analyst warns of potential market volatility despite recent Bitcoin surge, citing macroeconomic factors and uncertain recession risk.
Analyst recommends cautious trading strategy, focusing on long-term investments and avoiding leverage.
Bitcoin has been on a recovery streak over the past few weeks, climbing from $52,500 and reclaiming
key levels
at $57,000 and $60,000. However, the cryptocurrency is facing strong resistance at $64,000, with the 200-day moving average acting as a barrier. A breakout above this level could push Bitcoin to a new all-time high, supported by a relative strength index (RSI) above 50%.
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While the short-term trend is positive, a rejection at $64,000 could lead to a pullback. On-chain data shows miners have reduced selling, which might tighten supply and fuel a rally.
But wait… Is it too soon to celebrate?
Crypto analyst VirtualBacon recently shared his insights on Bitcoin’s surge following the Federal Reserve’s 50-basis point rate cut. After months of slow movement, Bitcoin passed $64,000, but VirtualBacon warns that it might be too early to get excited. While the market responded quickly, the real challenge lies in breaking through resistance at $64,900.
16/x Summary of Key Takeaways
• The Fed’s rate cuts have pushed Bitcoin to $63K, but we’re still in a choppy range – don’t FOMO just yet.
• Watch for $65K – a breakout above this is needed to confirm a bull run.
• The unemployment rate is the key metric. If it stays below…
— VirtualBacon (@VirtualBacon0x)
September 23, 2024
Key Level to Watch: $65K Resistance
Analysts stress that Bitcoin is still stuck in a volatile range, with
$64,900
acting as a major resistance point. A break above $65,000 would confirm an uptrend, but until then, caution is advised. VirtualBacon also noted that Fed Chair Jerome Powell hinted at another possible 50-basis point rate cut by year-end, which could bring more volatility to the market.
VirtualBacon also raised concerns about a potential recession. Historically, major rate cuts have often preceded recessions, with eight of the last 13 cycles resulting in economic downturns within a year.
Also Read :
Crypto September Calendar: Key Economic Events to Watch This Week
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However, the exact timing remains unclear. A key factor to watch is unemployment. If it stays below 4.4%, a recession could be delayed until 2026.
A Careful Approach: Stick to Long-Term Plans
For now, VirtualBacon advises a cautious trading strategy. He suggests holding positions in Bitcoin, Ethereum, and Solana, while gradually investing in sectors like AI, meme coins, and Layer 1 blockchains. He warns against using leverage due to the market’s unpredictability and encourages traders to stay patient and follow broader economic trends.
VirtualBacon’s message is clear: don’t get caught up in FOMO (Fear of Missing Out). Until Bitcoin breaks above $65,000, it’s better to remain cautious and stick to long-term strategies. The unemployment rate will be a key indicator, as market liquidity could drive Bitcoin higher—if recession fears don’t materialize.
Investors Await the Next Moves
Looking ahead, investors are watching for further rate cuts from the Federal Reserve, with the next decision expected on November 7. Lower rates could stimulate the economy, boosting corporate earnings and driving growth. In the meantime, upcoming economic data, such as the PCE Index and GDP figures, could add volatility to the market this week.
Stay tuned for the latest updates
– right here on Coinpedia.
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