Bitcoin Price Aims for $64,000 as Market Sentiment Improves

After weeks of caution, Bitcoin (BTC) traders are regaining their spirits and increasing trading activity. This new momentum comes from the Federal Reserve's decision to cut interest rates by 50 basis points (0.50%), reviving market confidence.

Bitcoin is now trading above $61,000 for the first time in nearly a month, signaling a potential bull run is imminent.

Bitcoin Sees Revival in Trading Activity

The Federal Reserve’s 50 basis point interest rate cut is expected to spur investment in riskier assets, like Bitcoin. This trend has already begun, marked by a positive shift in sentiment toward the leading cryptocurrency. After weeks of fear-driven markets, sentiment turned neutral on Wednesday after the rate cut. The shift signals renewed confidence, with Bitcoin holders neither too bearish nor too greedy. In such neutral conditions, investors typically return to the market slowly, boosting volume and contributing to a steady price increase.

At the time of writing, Bitcoin was trading at $61,967. On Thursday morning, BTC briefly reached $62,501 before making a slight correction. In the past 24 hours, volume has increased by 12%, reaching a total of $46 billion.

With Bitcoin trading at its highest level in nearly a month, the majority of trades on Thursday were profitable. According to BeInCrypto, the ratio of profitable BTC volume to losing trades hit its highest level since July, at 3.48. This means that for every trade that resulted in a loss, there were 3.48 profitable trades.

Despite Bitcoin’s positive price movement, spot Bitcoin ETFs saw their first net inflows after four consecutive days of inflows. SoSoValue reported that net inflows from these funds reached $53 million on Wednesday.

BTC Price Forecast : A Successful Test Could Send Price to $64,000

Bitcoin’s recent price surge has pushed it above a key resistance level at $61,388. Additionally, it is currently trading above its 20-day exponential moving Medium (EMA), which suggests that buying pressure is outweighing selling activity.

While this rally is notable, Bitcoin is likely to retest this resistance level. BTC has only broken through it once since the support turned resistance level in early August. Each attempt to rally has been met with strong selling pressure, resulting in a downtrend. A failed test could send Bitcoin tumbling to find support around $54,302.

However, if the test is successful and BTC breaks above the resistance level, the uptrend will be confirmed, with Bitcoin possibly heading towards $64,312.

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