Bitcoin (BTC) has surged to a multi-month peak, reclaiming the $80,000 mark and even reaching $81,749 on Thursday, following comments from Federal Reserve Governor Christopher Waller, who eased concerns about an imminent rate hike in September.
Nevertheless, the leading cryptocurrency appears to have hit a crucial resistance area, which could impede further upward movement. Should BTC maintain its position above $80,000, it might aim for a breakout past $83,500, confirming a falling wedge formation.
Bitcoin (BTC) Surpasses $80,000 Amid Dwindling Rate Hike Predictions
Currently priced around $80,826, Bitcoin has seen a near 4% increase within the past 24 hours. This uptrend marks a recovery from recent slumps, allowing it to revisit levels that previously constrained its rally in August. It’s vital for buyers to turn the $80,000 threshold into robust support to further validate the current breakout.
This turnaround followed Waller’s remarks, which tempered expectations for immediate rate hikes contingent upon upcoming favorable inflation data. He made it clear, however, that an increase could still occur if inflation rates rise unexpectedly. His comments have spotlighted the forthcoming August Consumer Price Index (CPI) data, critical in determining the trajectory of interest rates.
Moreover, yields on two- and ten-year Treasury bonds have decreased, while the dollar has weakened, establishing a favorable atmosphere for Bitcoin and similar risk assets.
Corporate Interest Bolsters Bitcoin’s Resurgence
A renewed wave of corporate interest has also played a significant role in Bitcoin’s rebound. Matt Cole, CEO of Strive, announced plans to acquire over 20,000 BTC by the year’s end, enhancing the overall sentiment surrounding the cryptocurrency. Earlier this week, Strive reported purchasing 1,800 BTC at an average price of $79,431, raising its total holdings to 23,156 BTC.
In another development, French company Capital-B successfully raised €7.6 million through a private placement led by Blockstream CEO Adam Back. The firm intends to utilize these funds for a 376 BTC acquisition. The revival of corporate interest suggests a renewed institutional trust in Bitcoin, with companies looking to hold BTC as a reserve asset once again.
Declining Dollar Fuels Bitcoin (BTC) Growth
Alongside the Fed’s comments and lower Treasury yields, a weakening dollar has further lifted Bitcoin and the wider cryptocurrency market. The upward movement of BTC is occurring against a backdrop of a strengthening Japanese yen (JPY), which some sources attribute to intervention by the central bank.
The USD/JPY pair dropped to 158.5 on Wednesday and further decreased to 155.4 on Thursday. This decline has pressured the US Dollar Index (DXY), bringing it down to 99. Speculation about central bank intervention to stabilize the yen has raised concerns about the unwind of carry-trades. The Macro Paper noted:
“In the last 24 hours, USD/JPY has dipped nearly 2.5%, an occurrence that suggests significant intervention. Additionally, the Bank of Japan is likely to increase rates this month, with more hikes anticipated in Q4. This mirrors the actions observed in Q3 2024, when the Bank of Japan intervened and raised rates simultaneously.”
Will Bitcoin (BTC) Break Through Significant Resistance?
Bitcoin’s resurgence has the cryptocurrency retesting the $81,000 to $82,500 range that limited its August uptrend. A closing price above this level could signal a breakout, potentially driving the price toward $85,000. Analyst Franklin highlighted $83,450 as a key support point, noting that BTC is currently testing a falling wedge breakout. A close above critical resistance levels is essential for confirming this breakout.
Market momentum appears robust, illustrated by the fear and greed index at 78 and the relative strength index (RSI) exceeding 70, indicating overbought conditions. Furthermore, BTC is above all four key moving averages on its daily chart (20-day at $74,775, 50-day at $68,489, 200-day at $69,602, and 100-day at $66,334). Additionally, Bitcoin has crossed above the upper Bollinger Band on the 4-hour chart, indicating considerable upward pressure, but this may also suggest that price movements are becoming overstretched.
Analysis from CoinGlass’ liquidation heatmap indicates that BTC has navigated through several short clusters between $78,000 and $80,500, likely triggering forced buying as traders closed their positions, accelerating upward momentum. The next significant cluster is situated between $81,300 and $81,600. Clearing this region could lead to a surge toward $85,000, while also liquidating smaller clusters along the way. Conversely, downside liquidity is concentrated in the range of $76,400 to $79,800. Should the price drop below $80,000, it will likely trend toward these lower levels.
Disclaimer: This article is for informational purposes only and should not be interpreted as legal, tax, investment, financial, or any other type of advice.
This piece was first published as Bitcoin (BTC) Reclaims $80,000 As Fed Cools Rate Hike Expectations on Crypto Breaking News – your reliable source for cryptocurrency news, Bitcoin updates, and blockchain developments.