Bitcoin has crossed its long-term moving average, breaking key resistance and shifting market sentiment towards greed.
- BTC broke its 200-day moving average, turning previous resistance into potential new support, signaling a bullish trend. Rising market sentiment towards greed and increased BTC withdrawals from exchanges are key factors driving Bitcoin’s price up.
Bitcoin[BTC] has finally crossed its long-term moving average that previously acted as a resistance level. The positive trend has continued over the past 24 hours, leaving many investors asking: Why is Bitcoin up today?
Bitcoin breaks key resistance
In the last trading session, Bitcoin saw an impressive increase of over 3%, pushing its price to around $65,177.
As of now, the uptrend persists, with a modest gain of less than 1%, bringing the price to approximately $65,400.
The 200-day moving average, which once served as resistance, is now gearing up to become new support—a bullish sign for the cryptocurrency.
Source: TradingView
Analysis also reveals that Bitcoin has surged over 11% since the beginning of the month. Despite seemingly slow day-to-day movements, the overall trend is upward.
Bitcoin sentiment shifts to greed
One reason Bitcoin is up today is the shift in market sentiment. BTC has been on an upswing since the Federal Reserve announced its first interest rate cut in four years.
Additionally, the U.S. market is awaiting a speech from Fed Chair Jerome Powell, which could significantly impact BTC and other digital assets.
Also, data from Coinglass shows that Bitcoin’s sentiment metric has increased to around 65%, indicating that the market has entered the “greed” phase. This shift in sentiment is a key factor in BTC’s recent price rise.
Source: Coinglass
Furthermore, historically, September hasn’t been a strong month for BTC, but this year is different. The current increase may also be driven by anticipation of a more positive trend typically associated with October.
More Bitcoin leaving exchanges
Another factor explaining why Bitcoin is up today is the movement of BTC off exchanges.
Data from CryptoQuant shows that the exchange netflow has been negative recently. This means more BTC is being withdrawn from exchanges than deposited, suggesting that holders prefer to keep their assets in private wallets rather than sell.
Source: CryptoQuant
A negative netflow during a price increase is usually a positive signal. It indicates that investors are betting on further price appreciation and are less inclined to sell. This decreased selling pressure can help drive up BTC’s price even more.
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Conclusion
Bitcoin’s recent price surge can be attributed to breaking key resistance levels, shifts in market sentiment towards greed, and more investors withdrawing BTC from exchanges.
These factors combined explain why Bitcoin is up today, and they may contribute to continued upward momentum shortly.
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