Bitcoin Price Surges After Fed Rate Cut: New Rally Ahead?

Bitcoin price started another increase above the $60,500 resistance. The Fed reduced rates by 0.50%, sparking a bullish wave in BTC toward $62,500.

• Bitcoin is gaining pace above the $60,200 resistance zone.
• The price is trading above $60,500 and the 100 hourly Simple moving average.
• There was a break above a short-term declining channel with resistance at $60,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could extend gains if it stays above the $60,500 support zone.

Bitcoin price remained supported above the $58,500 level. BTC formed a base and started another increase above the $60,000 resistance zone after the Fed surprised with a 0.50% rate cut.

There was a clear move above the $60,500 level. There was a break above a short-term declining channel with resistance at $60,000 on the hourly chart of the BTC/USD pair. The price tested the $62,500 resistance zone. A high was formed at $62,535 and the price is now consolidating gains.

There was a move below the $62,000 level. The price dipped and tested the 23.6% Fib retracement level of the upward move from the $59,164 swing low to the $62,535 high.

Bitcoin is now trading above $60,500 and the 100 hourly Simple moving average. On the upside, the price could face resistance near the $62,200 level. The first key resistance is near the $62,500 level. A clear move above the $62,500 resistance might start a steady increase in the coming sessions.

The next key resistance could be $63,200. A close above the $63,200 resistance might spark more upsides. In the stated case, the price could rise and test the $64,500 resistance.

If Bitcoin fails to rise above the $62,500 resistance zone, it could start a downside correction. Immediate support on the downside is near the $61,750 level.

The first major support is $61,250. The next support is now near the $60,850 zone or the 50% Fib retracement level of the upward move from the $59,164 swing low to the $62,535 high. Any more losses might send the price toward the $60,000 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $61,250, followed by $60,850.

Major Resistance Levels – $62,500, and $63,200.