Bitcoin extends recovery: Can it reclaim $27k?

Posted: September 15, 2023

Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion.

• 97% of rate of interest merchants leaned in the direction of a Fed charge pause in September.
• Decrease and better timeframe market constructions have been bullish at press time. 

Bitcoin [BTC] closed on 13 and 14 September in inexperienced after the US CPI (Client Value Index) data for August indicated a average client worth improve. 

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The info cemented a possible Fed charge pause on the 20 September FOMC Assembly, as 97% of Rate of interest merchants have been inclined in the direction of sustaining the present 5.25% – 5.50% goal vary.

Can Bitcoin reclaim $27k?

Supply: BTC/USDT on TradingView

The expectation of a possible Fed charge pause in September tipped BTC to mount above the earlier excessive of $26.4k on the H4 chart, successfully flipping the market construction to bullish. 

As well as, worth motion was above H4 50-EMA (Exponential Shifting Common) of $26.48k at press time. Regardless of the retracement on the time of writing, BTC may goal the mid-range degree close to $27k or range-high. 

However sellers may reap the benefits of a worth rejection on the mid-range or drop beneath $26.48k and the H4 50-EMA. In that case, the weakening may lengthen a reversal to the range-low once more close to $25.8k. 

In the meantime, the RSI confronted rejection on the overbought space however was nonetheless within the higher vary, indicating that purchasing strain eased barely.

Alternatively, the CMF crossed zero, underscoring improved capital inflows up to now few hours earlier than press time. 

Demand for Bitcoin improved, however…

Supply: Coinalyze

The Open Rates of interest surged from $7.5 billion on 11 September to >$8 billion at press time (afternoon Asian buying and selling session on 15 September). It exhibits demand for BTC elevated over the identical interval. 

How a lot are 1,10,100 BTCs worth today? 

However the CVD (Cumulative Quantity Delta) Spot improved solely from 13 September, indicating that’s when bulls acquire market leverage. 

However, the funding charge fluctuations seen from 14 September may curtail additional substantial upside into the weekend. So, a reversal close to the mid-range couldn’t be overruled.