Bitcoin[BTC] has finally broken above the long-term moving average that previously acted as resistance. The positive trend has continued over the past 24 hours, leaving many investors wondering: Why is Bitcoin up today?
Bitcoin Breaks Key Resistance Level
In the last trading session, Bitcoin saw an impressive gain of more than 3%, bringing its price to around $65,177.
Currently, the uptrend remains intact, with a modest gain of less than 1%, taking the price to around $65,400.
The 200-day moving average, which has been acting as resistance, is now poised to become new supportâa bullish sign for the cryptocurrency.
The analysis also shows that Bitcoin has increased by more than 11% since the beginning of the month. Although the daily fluctuations seem insignificant, the overall trend remains bullish.
Bitcoin Market Sentiment Turns to Greed
One reason for Bitcoin's price increase today is a change in market sentiment. BTC has been on the rise since the US Federal Reserve announced its first interest rate cut in four years.
Additionally, the US market is awaiting a speech from Fed Chairman Jerome Powell, which could have a major impact on BTC and other digital assets.
Data from Coinglass shows that Bitcoinâs sentiment index has increased to around 65%, indicating that the market has entered a âgreedâ phase. This shift in sentiment is a key factor in BTCâs recent price increase.
Furthermore, September has historically not been a strong month for BTC, but this year is an exception. The current surge may be fueled by expectations of a more positive trend that usually accompanies October.
More Bitcoins Leave Exchanges
Another factor explaining why Bitcoin is up today is the movement of BTC out of exchanges.
Data from CryptoQuant shows that exchange net inflows have recently turned negative. This means that more BTC is being withdrawn from exchanges than deposited, suggesting that holders prefer to keep their assets in personal wallets rather than sell them.
Negative net inflows when prices are rising are usually a positive sign. It shows that investors are betting on further price increases and are less inclined to sell. Reduced selling pressure could help push BTC prices higher.
Conclude
Bitcoinâs recent price surge can be attributed to breaking key resistance levels, a shift in market sentiment towards greed, and many investors withdrawing BTC from exchanges.
These factors combined explain why Bitcoin is up today, and could contribute to continued growth in the short term.
