Bitcoin prices were near their highest in a month after a series of dovish updates from the U.S. Federal Reserve and the Bank of Japan, with Bitcoin rising about 2.5% to over $64,120 on September 20.

Bitcoin traders have also begun to consider retesting historical highs, but for now, price support still needs to be more solid. Analysts say Bitcoin needs a daily close above $63,000 to carve out a path to a new all-time high.

Bitcoin continues to rebound after macroeconomic events this week boosted risk assets. BTC/USD is up nearly 8% this week and now faces a key resistance area that has kept the market suppressed for months.

Trader HornHairs said that after a very strong response to demand in the $57,000 range, the price surged to $63,000, "If we can clear $63,000 and stay above that level on an HTF closing basis (at least 1D) On, then given the HTF background, we can really push ATH.”

$BTC massive level coming up here at $63k after a very strong reaction off the demand in the $57k area

If we can clear $63k and hold above it on a HTF closing basis (at least the 1D) then, considering HTF context, we could make a real push towards ATHs https://t.co/7PZxAUrUxv pic.twitter.com/JdMq1qMRgc

— HornHairs (@CryptoHornHairs) September 19, 2024

The mid-$60,000 range is very important as it holds the various trend lines needed to act as support. These include the total cost basis of Bitcoin’s short-term investor base – the level that traditionally accompanies every bull market.

Family office MS2 Capital added that the 200-day simple moving average (SMA) now overlaps with the largest on-chain volume area (around $64,000).

#BTC

Key onchain volumes (Pre/Post #FOMC)

$63.3K – $67.0K (Resistance)$56.7K – $61.1K (Consolidation)$46.4K – $51.5K (Cycle Support)

Highest volume band: $64.0K (resistance) also aligns with the current 200d SMA

Price action is knocking on the door of $BTC… https://t.co/6gdgNDbyJO pic.twitter.com/i3ERGYIVSq

— MS2 Capital (@ms2capital) September 19, 2024

Well-known trader and analyst Rekt Capital said that Bitcoin is finally making progress after months of decline. “Bitcoin is breaking the downward trend of lower highs since late July, which means that $67,000 is now a key breakthrough. "Historically, Bitcoin has broken through its re-accumulation range 150-160 days after the halving. It is currently the 158th day after the halving."

Source: Rekt Capital Source: Rekt Capital Why did Bitcoin rise today?

The Bank of Japan’s decision to keep interest rates steady and the Federal Reserve’s recent rate cut boosted the price of Bitcoin today. The Bank of Japan decided to keep interest rates stable after raising interest rates last month. This decision is in sharp contrast to the 50 basis points cut in interest rates just announced by the Federal Reserve, thereby reducing the risks associated with the unwinding of the "yen carry trade", "yen carry trade" The transaction sent the price of Bitcoin plummeting nearly 25% in August.

In other words, investors see no immediate risk of rising borrowing costs in Japan, meaning they can borrow yen cheaply and continue to hold positions in high-yielding assets like Bitcoin.

Bank of Japan keeps rates at the same level, while the FED has cut the rates by 50 bps earlier this week.

Good things are likely to happen on the#Cryptomarkets after this week.

Bullish Q4.

— Michaël van de Poppe (@CryptoMichNL) September 20, 2024

In addition, the Federal Reserve's 50 basis point interest rate cut encourages the continuation of speculative investment as interest rates on safe assets remain unattractive, which helps Bitcoin prices rise as investors are more interested in maintaining or increasing exposure to high-yielding assets. confidence.

Today’s rise in Bitcoin’s price was further accompanied by strong increases in open interest (OI) and funding rates in its futures market. As of September 20, the total number of unsettled Bitcoin futures contracts was approximately $34.39 billion, the highest level since August 26. Still around 0.189% weekly.

When open interest increases, more money flows into the market, which is usually consistent with expectations of large price moves. This means traders are actively positioning themselves in the market and may expect further price increases.

The fact that funding rates have turned positive from negative levels earlier this month suggests market sentiment has shifted toward a more optimistic outlook. This means that more traders expect the price of Bitcoin to continue rising and will pay funding costs to hold long positions.

Bitcoin’s rise today is part of a rally that began last week when it tested the lower trendline of the current bull flag trend. Price is currently moving towards the flag’s upper trendline, around $65,500, with a move above $78,400 expected. Typically, the bull flag's upside target is measured after adding the breakout point to the height of the previous uptrend.

(Editor's note: The bullish flag pattern that often appears in an uptrend is simply called a "bull flag." It is characterized by a sharp rise in price, followed by a period of consolidation, with price running in parallel channels, like a flag on a flagpole. )

According to OKX market data, Bitcoin was trading at $63,432 at around 5 pm on September 20.

〈Bitcoin hits $64,000, what key levels to watch? 〉This article was first published in "Block Guest".