Bitcoin is at a critical price level following a market surge triggered by the Federal Reserve’s announcement of a 50 bps interest rate cut.
BTC has broken past the $60,000 mark, a psychological barrier that has shifted investor sentiment toward optimism. This level was seen as a turning point, and now many are eyeing higher targets for the leading cryptocurrency.
According to critical data from CryptoQuant, BTC’s supply is increasingly flowing into the Long-Term Holders cohort, which signals that the market is in equilibrium. If BTC continues this momentum, the next significant price target is $65,000, a crucial resistance level that hasn’t been breached since late July.
The interest rate cut has sparked renewed hope among investors that Bitcoin could spearhead a broader crypto market rally, pushing prices to new highs in the coming weeks. The next few days will be key in determining BTC’s future direction.
Bitcoin Is Preparing For A Rally
The crypto market is experiencing a surge after weeks of selling pressure and uncertainty, fueling optimism among investors and analysts who anticipate a potential bull run in the coming weeks. Bitcoin is showing renewed strength, with some experts predicting it will move swiftly toward new all-time highs.
CryptoQuant on-chain analyst Axel Adler recently shared a compelling chart on X, highlighting that Bitcoin’s Short-Term Holders Supply 30-Day Change has dropped to levels last seen in 2012. This shift in supply from short-term to long-term holders is significant.
Historically, when the supply flows into the hands of long-term holders, it often signals a market bottom. Long-term holders are known for their “HODL” strategy, meaning they are unlikely to sell their coins, regardless of short-term price fluctuations.
This concentration of supply in the hands of investors who have no intention of selling creates a supply crunch, which can push BTC prices higher. The reduced selling pressure and increasing demand set the stage for a possible surge in BTC price.
With market sentiment improving and key metrics pointing to a strong foundation, the coming weeks could see Bitcoin leading the crypto market toward new highs. Investors are watching closely for further signs of momentum.
BTC Surges Past $60,000: What Next?
Since Tuesday, Bitcoin is trading at $62,444 after an impressive 8% surge. The price finally broke past the daily 200 exponential moving average (EMA) at $59,350, signaling short-term strength.
BTC is less than 2.5% from testing the critical daily 200 moving average (MA) at $63,977. This level is one of the most significant indicators for Bitcoin, as it represents long-term market strength. If bulls reclaim this level as support, it would likely trigger a strong surge in Bitcoin’s price.
Should the momentum continue, BTC’s next target would be a move toward $63,977 and eventually higher supply levels around $65,000—a price not tested since late August. However, if Bitcoin fails to maintain its position above $60,000 in the coming days, investors could see a return to lower demand levels. Holding above key levels will be crucial to sustaining the current bullish momentum.
Featured image from Dall-E, chart from TradingView