Yesterday, Bitcoin (BTC) saw a 6% spike after Federal Reserve Chairman Jerome Powell announced policy adjustments and hinted at a potential 25bps rate cut in the upcoming September 18 meeting. This news has contributed to Bitcoin's recent volatility, with prices experiencing significant swings.
Analysts at CryptoQuant highlight crucial on-chain data that suggests traders are positioning for further price appreciation. As the market interprets the Fed's new policy stance, Bitcoin's price has risen above $63,000, with expectations to break past $65,000.
Key data shows Bitcoin exchange reserves on centralized exchanges have dropped to an all-time low, from over 2.75 million BTC to about 2.67 million BTC, a 3% decrease in 30 days. This decline may lead to a supply shock, potentially driving prices higher as available BTC for trading diminishes.
Currently, Bitcoin is trading at $64,100 and is maintaining above the crucial daily 200 Moving Average (MA). To break the $65,000 mark and sustain a bullish trend, it needs to stay above the $57,500 level and ideally the daily 200 Exponential Moving Average (EMA) at $59,538.
Overall, the combination of the Fed's policy hints and the bullish on-chain data is fueling optimism among traders and investors, indicating a potential Bitcoin rally in the coming months.
