BTC Shows Strong Momentum, Poised to Break $60,000

The price movement of Bitcoin remains uncertain as its momentum signals fear, uncertainty, and doubt (FUD). On Friday, the leading cryptocurrency surged over 4%, but then declined from Saturday to Monday, erasing those gains. However, BTCUSD regained its upward momentum on Tuesday, rising by 1.1% and trading at $58,861 at the time of writing.

Over the past three weeks, Bitcoin’s price has repeatedly faced resistance at the $60,000 level, making it a critical psychological barrier. The market is currently focused on the Federal Reserve’s interest rate decision on Wednesday. The first rate cut in four years is expected to have a significant impact on the cryptocurrency market, with the CME FedWatch tool reporting that 67% of traders anticipate a 50 basis point cut.

The prospect of a substantial rate cut has bolstered Bitcoin’s price, which saw an increase following the release of U.S. economic data on Friday. This momentum has driven Bitcoin ETF inflows to $436 million last week, compared to $1.2 billion in outflows over the previous 10 trading days.

The Bitcoin ETF, approved earlier this year, is a double-edged sword for cryptocurrency assets. While it simplifies institutional investment, it also exposes BTC to mainstream financial market shocks. Therefore, a significant rate cut by the Federal Reserve could help support Bitcoin prices as well as traditional asset markets.

If Bitcoin’s price remains above the pivot point of $58,880, it could continue to rise. The upward momentum might face initial resistance at $59,323, but breaking through this level would clear the path to test $59,680.

Conversely, falling below $58,880 would shift control to the buyers, with initial support likely at $58,360. If they extend their control, the resulting momentum could break this support level and invalidate the upward narrative. Additionally, the downtrend might continue to $57,850.

Sentiment: Neutral