- Bitcoin (BTC) price surged past $64,000 on September 20, driven by whale investors who acquired $1.5 billion worth of BTC following the US Fed’s 50bps rate cut.
- With strong support at $62,000 and potential resistance at $64,661, Bitcoin may rebound towards $70,000 in the coming week.
Bitcoin (BTC) price crossed the $64,000 mark on September 20, before retracing 2.6% over the weekend, hitting $62,478 on Sunday, September 22. Whale investors have acquired over 25,000 BTC since the US Fed announced a 50bps rate cut on September 18. Valued at the current prices, this implies that Bitcoin’s largest investors have spent $1.5 billion on fresh Bitcoin purchases since the Fed’s announcement.
Whale Activity and Market Impact
On-chain data shows that whale investors have been buying large amounts of BTC since the US Fed announced a 50bps rate cut on September 18. This significant acquisition raises questions about whether Bitcoin could be propelled towards $70,000 in the week ahead. The market reaction to the Fed’s decision has been overwhelmingly positive, with Bitcoin’s price surging by 6% between September 18 and September 20 to hit a 25-day peak at $64,128.
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Bitcoin Price Advances as 50bps Fed Cut Exceeds Market Expectations
Since the US Bureau of Labor Statistics released dovish US Non-Farm Payroll (NFP) figures on September 6, the crypto market has been on a steady uptrend. Investors quickly priced in an imminent rate cut, and while analysts hinted at a 100% chance of a rate cut, 67% of investors had anticipated only a 25bps rate cut according to CME Group’s FedWatch report. The Fed’s decision to slash rates by 50bps triggered another wave of buying pressure across major risk asset markets, including the cryptocurrency sector.
Whale Investors Fuel Buying Frenzy
According to the BTCUSD daily price chart, Bitcoin opened trading at $60,300 on September 18, as investors made last-minute purchases, anticipating the rate cut. Many bearish traders expected a sell-the-news cycle, but the higher-than-expected 50bps cut led to a buying frenzy. From September 18 to September 20, BTC price rallied by 6% to a new 25-day peak at $64,128, indicating positive investor sentiment towards the Fed’s rate cut.
Bitcoin Price Forecast: Holding $62k Could Trigger Sharp Rebound
After the Fed’s rate cut announcement pushed Bitcoin to a high of $64,128 on Friday, it has since pulled back by 2.6% over the weekend. However, with inflows of $1.5 billion from large investors, Bitcoin may be set for a rebound. Based on the Bollinger Bands (BB) indicator, current BTC price resistance levels can be identified at $64,661 and $70,000, while key support lies at $58,859 and $53,058. Amid rising market activity, a breach of the upper band at $64,661 could trigger a rapid breakout towards $70,000.
The Bull Bear Power (BBP) indicator also shows a positive value of 4,109.73, signaling high volatility and potential buying pressure. The histogram is green, reinforcing the likelihood of a price rebound. The BBP tracks the percentage that Bitcoin’s price is within the Bollinger Bands range, with higher values indicating price strength. In the week ahead, breaking above $64,661 could open the door for another rally toward $70,000, while holding $62,000 as support will be critical to avoiding a deeper pullback. The on-chain inflows and these technical signals lean toward a bullish outlook for Bitcoin.
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