Bitcoin surpassed $62,000 after the FED's 50 basis point rate cut decision. The FED's first rate cut in four years surprised Wall Street analysts.
While most analysts were expecting a more moderate 25 basis point cut, the Fed surprised both analysts and the market by cutting 50 basis points.
While the FED's aggressive start to the interest rate reduction cycle pushed BTC and altcoins higher, analysts announced their predictions for the future.
Will Bitcoin Continue to Rise?
Speaking to Decrypt, FxPro senior analyst Alex Kuptsikevich said that risk appetite in Bitcoin and cryptocurrencies increased following the FED's decision.
Kuptsikevich stated that $64.00 is now a critical resistance level for Bitcoin, and that if this level is exceeded, the rise may continue.
“The cryptocurrency market has been moving in a downward corridor since mid-March. Bitcoin has also been in a downtrend since March, with the previous peak of around $64,000 coinciding with the 200-day moving average.
“We think that Bitcoin may face serious resistance at this level, but this resistance can be broken, and breaking this resistance will open the expected upward path for BTC.”
Bybit Institution President Chris Aruliah was also among those who expected an increase in Bitcoin. Stating that historically, interest rate cuts and lower interest rates have directed investors and money to risky assets, including cryptocurrencies, Aruliah argued that Bitcoin's future price movement will depend on the behavior of short-term investors.
What are the Critical Levels in Bitcoin?
Finally, Pi42 CEO Avinash Shekhar said that the critical level for Bitcoin to rise after the FED is $60,000 and $62,000.
Stating that Bitcoin reaching higher levels above $62,000 will continue the rise, Shekhar stated that a drop below $60,000 will increase the selling pressure.
“Short-term investors have been selling since August, signaling that BTC has reached a potential bottom, while long-term investors are holding onto support above $60,000.
But $60,000 still remains a critical battleground for Bitcoin.
“A high above $62,000 here could restart the bullish momentum in Bitcoin, while a drop below $60,000 could prolong the selling pressure.”
*This is not investment advice.