ollowing the Fed’s 50 bp rate cut on the 18 of September, Bitcoin saw a strong recover of approximately 6%, hitting a high of $65,000 which is considered to be the mid range and a very strong resistance level.
Derivatives-Driven Rally
Although Bitcoin price has had a nice move in the past week, most of the price move was drive by futures trading and not purely spot positions. This is highlighted by the fact that open interest in BTC futures has grown to $19 Billion dollars reaching higher levels than August. This could indicate that a correction could be underway.
Connecting ETF Flows with Market Sentiment
Lat week has shown a resurgence in interest related to digital assets such as BTC especially in connection with Bitcoin ETF that witnessed inflows of approximately $397 Million dollars.
Market Correlations
The prediction for Bitcoin's future path could be influenced by changes in the S&P 500 and other market trends. It’s been noticed that there is a strong relationship between Bitcoin and the S&P 500, potentially impacting the way crypto markets move.
Bitcoin at Crossroads: $65,200 Key
Even though derivatives trading may indicate a potential decline in Bitcoin’s value under $65,200, high ETF inflows and broader market trends could counter this thesis. Crypto-specific factors and traditional market indications should be examined by investors for insights on Bitcoin's next direction.
