Bitcoin soars over $60,000 as Fed Minutes hint at September rate drop
The July Federal Reserve Minutes suggest a September rate decrease, strengthening Bitcoin.
Wednesday's $39.50 million inflow for US spot Bitcoin ETFs marked the third straight day of advances this week.
With Bitcoin OTC desk balances for miners rising and the long-to-short ratio below one, on-chain data is gloomy.
The Fed Minutes on Wednesday suggested a September interest-rate decrease, keeping Bitcoin (BTC) over $61,000 on Thursday.
The FOMC Minutes from Wednesday indicated that most members believed "it would likely be appropriate to ease policy at the next meeting if data continued to come in as expected." The minutes also noted that several policymakers believed the recent inflation and unemployment rate increases merited a 25-basis-point (bps) rate drop at the July meeting.
On Wednesday, Coinglass data showed US spot Bitcoin ETFs witnessed a moderate $39.50 million inflow, marking the third straight day of increases this week. These tiny net movements might suggest investor sentiment, yet the 11 US spot Bitcoin ETFs own $54.16 billion in Bitcoin reserves.
Bitcoin climbed 3.7% Wednesday following the Fed Minutes. It trades 0.3% higher at $61,298 on Thursday and approaches $62,066, a significant resistance level.
The $62,066 level, the 61.8% Fibonacci retracement from July 29 to August 5, may provide resistance to BTC's ascent. This level is a strong resistance zone since it matches the trendline and the 100-day Exponential Moving Average of $62,135.
If BTC fails to close above $62,066, it might drop to $57,115 before falling 19% to $49,917 daily support.
On the daily chart, the Relative Strength Index (RSI) has crossed 50, while the Awesome Oscillator (AO) remains below zero. Both indicators must go below neutral to continue negative momentum.
However, if Bitcoin's price can close above $62,066, the daily chart would show a surge to $65,596, the August 2 high. This might push prices up 6% to reach weekly resistance at $69,648.
