Bitcoin

Reserve

<p><a href="https://coinpedia.org/crypto-live-news/bitcoin-etfs-add-397m-while-ethereum-etfs-shed-26-2m-this-week/">Bitcoin's price</a> has soared to a crucial milestone of $64,000, marking its first visit to this level since August 9. This impressive rally comes after a significant rebound of over 20% from its lowest point earlier this month. The driving force behind this surge? Wednesday’s decision by the <a href="https://coinpedia.org/news/bitcoin-hits-61k-as-fed-slashes-interest-rates-by-50-bps-after-four-years/" target="_blank" rel="noreferrer noopener">Federal Reserve to cut rates</a> by 50 basis points, along with hints of more cuts to come later this year.</p>   
<p>Is this the beginning of a new bull market for Bitcoin? To answer this question, we must dive deeper. </p>   
<h2 class="wp-block-heading" id="h-understanding-current-market-sentiment">Understanding Current Market Sentiment </h2>   
<p>According to CryptoQuant analyst Datascope, Bitcoin’s recent price action aligns closely with key on-chain metrics, particularly the "Supply in Profit." </p>   
<p>This metric reflects the percentage of Bitcoin holders who are currently in profit based on the asset's current price. A drop in this metric suggests more investors are holding Bitcoin at a loss, an important signal in gauging market sentiment.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/cryptoquant_com/status/1837210064660136301 
 </div>
</figure>   
<p>Datascope's analysis points to a sharp decline in Bitcoin's <a href="https://coinpedia.org/price-analysis/bitcoin-failed-to-hold-64000-whats-next/" target="_blank" rel="noreferrer noopener">"Supply in Profit"</a> as prices dipped earlier this month. With fewer investors seeing gains, the market has experienced reduced selling pressure—an encouraging sign for potential price stability. Those still in profit are holding onto their positions, helping to prop up the market amid a sea of losses.</p>   
<h2 class="wp-block-heading" id="h-is-bitcoin-poised-for-a-breakout">Is Bitcoin Poised for a Breakout?</h2>   
<p>As noted by Datascope, the Supply in Profit metric is getting close to the Psychological Inflection Line. This line represents important levels that investors feel strongly about and often serves as key support or resistance. These psychological levels are crucial for influencing how investors feel about the market.</p>   
<p>If <a href="https://coinpedia.org/crypto-live-news/bitcoin-set-for-a-pullback-momentum-slows-as-price-rises-analysts-warn-of-60-6k-dip/">Bitcoin’s price</a> goes above this line, it could create a sense of optimism among investors. On the other hand, if it drops below this line, we may see more selling, which could harm overall market sentiment.</p>   
<p>Also Check Out: <a href="https://coinpedia.org/news/us-election-2024-whos-better-for-us-crypto-market-donald-trump-or-kamala-harris/" target="_blank" rel="noreferrer noopener">US Election 2024: Who’s Better for US Crypto Market Donald Trump or Kamala Harris?</a></p>   
<p><strong>As Bitcoin continues to evolve, so too will the strategies and tactics of its investors. What's your plan for the month ahead? </strong></p>

Coinpedia Fintech News

Table of Contents

CoinPedia News

Other articles published on Sep 21, 2024

Coinpedia Fintech News

Bitgert, Cardano or Ethereum: Who Will Lead the 2024 Layer-1 Rally?

SHIBA INU Price Moonshot to $1? Unleashing the SHIB price Analysis

Bitgert, Solana, and BNB Coin: Price Predictions for 2024

Coinpedia Fintech News

How Did Shezmu Recover $5M After a Major Crypto Vault Hack?

Join our free newsletter for daily crypto updates!