Key Insights:
- Bitcoin price in USD is facing resistance at $116,466 following a 0.25% U.S. Federal Reserve interest rate cut.
- Coinbase BTC reserve spiked, raising an optimistic outlook.
- Stock-to-Flow (S2F) founder PlanB believes BTC is set to hit $250,000 by 2026.
Bitcoin price in USD is currently in the spotlight as the leading cryptocurrency market, but it has recently encountered mild resistance, with prices hovering around $116,400. This price movement follows the announcement of a 0.25% interest rate cut by the U.S. Federal Reserve, which has contributed to a mixed sentiment in the market.
While some market participants think the initial hype surrounding the Fed rate cut may be over, analysts remain optimistic, projecting bullish trends for BTC in the near term.
The Bitcoin Price USD Resistance
Technical analyst and investor Titan of Crypto has pointed out that Bitcoin is currently facing significant resistance around the $116,466 mark. This situation suggests that as the BTC price approaches this threshold, many sellers step in, inhibiting further upward movement.
According to Titan, Bitcoin remains trapped beneath a bearish fair value gap on the daily price chart—this is a phenomenon following a sharp price drop that typically leaves a range with minimal trading activity. The existence of this gap often serves as a wall of resistance, especially when buyers attempt to push through it again.
Titan of Crypto notes that a close above the bearish fair value gap could potentially unlock a new phase for BTC, allowing for more upward price movements. This scenario implies that buyers have successfully absorbed the selling pressure at the $116,466 resistance level.
As of now, the Bitcoin price in USD has seen a slight decline of 0.58% over the previous day, settling at approximately $116,459. Daily trading volumes have also diminished by 35.2%, totaling about $43.2 billion.
This bearish trend can be attributed to the recent announcement of the 0.25% interest rate cut during the September Federal Open Market Committee (FOMC) meeting. This is noteworthy as it marks the first rate reduction this year, influenced by ongoing inflationary pressures.
Markets had anticipated this rate cut, with traders forecasting a 100% likelihood of it happening. Many believed that such a decrease in rates would enhance liquidity—generally a bullish indicator for Bitcoin and other cryptocurrencies.
However, the current dip in BTC prices suggests that excitement surrounding the immediate effects of the rate cut may have faded.
Coinbase BTC Reserve Shift Perspective
Despite the recent market fluctuations, there remains a palpable sense of optimism for a future rally, especially in light of the increased BTC reserves at Coinbase.
According to data from the on-chain analytics platform CryptoQuant, Coinbase’s reserves currently exceed $112 billion, comprising Bitcoin, Ethereum (ETH), and stablecoins. This uptick marks a four-year high—the highest level seen since November 2021—signaling renewed confidence from both institutional and retail investors.
Historically, a surge in exchange reserves often precedes or coincides with bullish price trends. When investors transfer assets to exchanges, it typically results in increased liquidity, facilitating larger trades and heightening demand, which may ultimately drive prices higher.
Thus, this four-year high in Coinbase reserves may indicate robust market strength and perhaps even set the stage for Bitcoin’s next significant move.
PlanB Targets BTC at $250K By 2026
On another optimistic note, market analyst PlanB has made bold predictions regarding Bitcoin’s future price. He forecasts that BTC could reach $250,000 as early as 2026, emphasizing his confidence in the asset’s upward trajectory.
PlanB reflects on his earlier forecasts, particularly one made in January 2023, which correctly identified that BTC had bottomed out around $15,500 following the collapse of FTX in November 2022. Since that low point, Bitcoin has managed to recover and even achieve new highs in 2023.
PlanB asserts that Bitcoin’s price rally will likely continue into 2024, projecting it to surge towards $32,000 following the anticipated halving event in April 2024. Previous halvings have led to significant price increases; for example, Bitcoin traded around $70,000 after the last halving.
Furthermore, PlanB’s earlier price predictions—once viewed as overly ambitious—have materialized. He now believes BTC will surpass $250,000 by 2026, indicating an increase of over 100% from its current levels. Considering his track record, market observers are keenly watching how this forecast unfolds.