Bitcoin has successfully reclaimed the $60,000 threshold on September 13, following a robust rally that saw its price increase by approximately 10% this week. This resurgence has shifted the narrative for September, turning it into a positive month for investors. As Bitcoin trades at around $59,434, market observers are now speculating whether this upward momentum will lead to increased buying activity in altcoins such as FET, SUI, AAVE, and INJ.
Looking ahead, all eyes are on the upcoming Federal Open Market Committee (FOMC) meeting scheduled for September 18. According to the CME Group’s FedWatch Tool, there is a 50% likelihood of a 50-basis point rate cut. However, should the Federal Reserve opt for a more conservative 25-basis point cut, a swift downward reaction in the cryptocurrency markets could ensue.
Despite the short-term volatility surrounding Bitcoin’s price, long-term investors remain undeterred. Notably, MicroStrategy, a business intelligence and software company, revealed that it acquired 18,300 Bitcoin between August 6 and September 12, averaging $60,408 per Bitcoin after expenses. This latest purchase brings MicroStrategy’s total holdings to 244,800 Bitcoin, with an average acquisition cost of $38,585.
The critical question now is whether Bitcoin can maintain its position above $60,000 and attract further investment. Additionally, market participants are keen to see if altcoins will follow Bitcoin’s lead.
Bitcoin Price Insights
Bitcoin’s recent performance shows it closing above the 50-day simple moving average ($59,693) on September 13, a sign that the market has rejected a decline below $55,724.
The 20-day exponential moving average ($58,461) is beginning to trend upward, and the relative strength index (RSI) is firmly in positive territory, suggesting that bullish sentiment is gaining traction. If Bitcoin can hold support at these moving averages, analysts predict a potential rally to $65,000 and possibly even $70,000.
However, this optimistic outlook could be challenged if Bitcoin experiences a sharp decline below the 20-day EMA, which could lead to a drop to $55,724. A series of retests at a support level often weakens it, potentially paving the way for a further decline to $52,500.
On a shorter time frame, the 4-hour chart indicates that bearish forces are attempting to hinder recovery around the $61,200 mark. Should the price fall below the 20-EMA, it would signal a loss of bullish momentum, possibly dragging the price down to the 50-SMA and then to $55,724.
Conversely, if Bitcoin manages to bounce back from the 20-EMA, it would indicate that buyers are actively stepping in during minor dips. This scenario would enhance the likelihood of a breakout above $61,200, setting the stage for a potential climb to $65,000.
