Bitcoin's price has surged 21% from its August 5 low of $49,577, contributing to a broader cryptocurrency market valuation that has reclaimed the $2 trillion mark, up 20.5% since the same date. Market participants are eagerly awaiting the Federal Reserve's interest rate decision on September 18, with expectations of a reduction to between 5% and 5.25%.
The recent US Consumer Price Index (CPI) showed a year-over-year inflation slowdown, while unemployment claims rose to 230,750, exceeding expectations. Analysts note that the Russell 2000 Index increased by 4.3% and the S&P 500 by 3.56% over the last week, indicating improving macroeconomic conditions.
Currently, market sentiment is classified as 'fear,' with the Crypto Fear & Greed Index at 32, up from below 20 earlier in August. This shift suggests potential buying opportunities, as extreme fear often coincides with market bottoms. Meanwhile, Bitcoin's network hashrate reached a record high of 742 EH/s, signaling miner optimism despite recent profitability challenges.
Bitcoin's price momentum appears to be targeting the $62,000 to $65,000 range, though it remains in a downtrend unless it can close above $65,000 weekly. Current trading strategies focus on buying dips and selling at resistance levels, with market dynamics largely driven by forced buying from liquidations.