Will $BTC Break Above $62K and Clear Resistance? Analysts Say ‘Yes’

• Bitcoin ($BTC) investors are cautious as the token has a hard time breaking above its $62K resistance level.
• While some analysts predict a bearish reversal if $BTC fails to hit $62K, others suggest a temporary correction rather than a long-term downward trend.
• The Federal Reserve's (FED) upcoming expansionary policies could be a positive catalyst for $BTC's price action.

$BTC has been hovering below $62K since August 9, struggling to break above the new resistance level. The drop from its recent height of $70K was caused by the stock market turmoil that triggered FUD among investors.

Although $BTC rebounded from $49K, its former all-time high of $73K appears to be out of reach.

Analysts at Kraken share a pessimistic outlook: if $BTC fails to hit $62K soon enough, it could drop below $50K.

$BTC's Next Move - Bullish or Bearish?

Kraken notes that $BTC needs to hit $62K and stay there to avoid a retest of $49K. However, some analysts argue that $BTC's price action shows a corrective pattern, not a bullish trend.

Moreover, $BTC's current price of $61K is near its 200-day exponential moving average (EMA) of $59K, which gives more weight to the recent data. This suggests that the market may be experiencing indecision or a potential shift in trend.

On the other hand, the US FED's upcoming expansionary policies are likely to favor $BTC bulls.

The Federal Open Market Committee (FOMC) will announce an interest rate cut at the next meeting on September 18. Economists expect a substantial 0.5% cut, which typically favors high-risk markets like crypto.

Markus Theilen at 10x Research also believes that $BTC is poised for a short squeeze, which typically increases the asset's price as investors who shorted it strive to cover their positions.

Traders Share a Positive Outlook

Similar to Kraken, an analyst and trader, Decode notes that $BTC must rebound to $63K by the month's end to get back on the upward track.

While $BTC lost momentum and the September trend doesn't look exciting, Decode is bullish for Q4.

Another X user expects $BTC to break its resistance level within the next seven days. Many anticipate $BTC to follow gold, saying, It's a matter of when, not if.'

Closing Remarks

The market's indecision, as indicated by the proximity to the 200-day EMA, and the potential for a downward trend create a cautious outlook for the short term.

Yet, HODLers are bullish for the future.

References

• FOMC Meeting Calendar (FED)
• MMCrypto (X)
• Decode (X)
• Bitcoin (CoinMarketCap)

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