Wake up, bulls! It’s your time to shine. Federal Reserve chairman Jerome Powell has finally agreed to cut America’s interest rates next month ahead of the presidential election.
Bitcoin was quick to react, even before Powell said “the time has come for monetary policy changes” during his speech at Jackson Hole, Wyoming.
He has made it clear that the Fed is ready to tweak its policies based on the current economic situation, with inflation cooling down and the job market getting weaker.
Jerome Powell
He didn’t give exact details on when or how much the cuts will be, but the message was clear: rate cuts are on the way
At press time Bitcoin was trading around $61,524.92, with a slight uptick, making its way straight to the next major critical level at $65,000.
The Moving Averages, for instance, are lining up nicely. The price is above the 50-day and 100-day Simple Moving Averages, and it’s closing in on the 200-day SMA.
This alignment usually signals strong support levels, giving traders confidence that Bitcoin isn’t going to drop off a cliff anytime soon. Of course, the strong bullish reversal indicator double bottom also appeared at around $59,000.
The MACD is also flashing bullish signals, with its line sitting at 43.69, above the signal line at 124.97, with a positive histogram to boot. This all points to momentum building in Bitcoin’s favor.
Even the RSI is showing strength, sitting at 62.20. It’s not quite in overbought territory yet, which means there’s a lot of room for Bitcoin to climb.
$65,000 seems attainable for now, but even if BTC manages to smash that, it’s likely that it’ll be temporary. A short-term pullback is still expected until the Federal Reserve actually cuts the interest rates.
*This story is developing and will be updated.*
