As Bitcoin maintains its position above $60,000, buyers are eyeing the $66,000 level amidst speculations of a potential rate cut. The current price of Bitcoin sits at $60,236, showing minimal movement throughout the day after experiencing a 3.61% jump yesterday.
There is growing optimism among investors as the possibility of a 500 basis point cut in interest rates looms, particularly with the upcoming FOMC meeting. This sentiment, coupled with an inverted head-and-shoulder pattern in the 4-hour chart, suggests an upward trend in Bitcoin as market sentiments improve.
The recent bullish jump in price has formed an engulfing candle on the daily chart, negating the three-day bearish pullback observed over the weekend and Monday. Furthermore, the recovery run in the 4-hour chart and the bullish engulfing candle in the daily chart complete the right shoulder of the inverted head-and-shoulder pattern. This increases the likelihood of an uptrend for Bitcoin once the minor pullback retests the bullish breakout.
Using Fibonacci levels on the daily chart, the next resistance level is projected to be at $61,613, with a target of $66,600.
Supporting the bullish recovery, the Bitcoin ETF market has seen an increase in inflows. In particular, the U.S. Spot Bitcoin ETF market experienced its fourth consecutive day of inflows, with $186 million coming in. Grayscale’s Spot Bitcoin ETF also noted zero outflows, while Bitwise and Fidelity ETFs contributed to the market’s growth with inflows of $45.4 million and $56.6 million, respectively.
Looking at the price action levels in the 4-hour chart, the next resistance levels above the $61,451 ceiling are at $64,596 and $66,590. On the other hand, the base supports lie at the psychological support of $60,000, followed by the horizontal level of $57,681. The MACD indicator in the 4-hour chart signals a bullish crossover with a surge in positive histograms.