5 minsBitcoin rose on Friday, reaching an 8-week high, bringing 66,000 into focus. Meanwhile, altcoins are also in the green, with Ether trading near 2700, and BNB has jumped over 600 on rumours that the former Binance CEO CZ could be released today.
Bitcoin has been on a roll since the Federal Reserve cut interest rates by 50 basis points last Wednesday. Prior to the Fed rate decision, BTC traded below 60K. Following the start of the US central bank’s rate-cutting cycle, Bitcoin quickly reclaimed 60K, surging above 64K by last Friday.
Bitcoin retakes key resistance levels
Today, bulls have pushed Bitcoin above the key 200 SMA and 65k resistance, lifting it to its highest level since August 1st. A rise above these key technical levels could mean that Bitcoin is on track to rally much higher.
The jump in bitcoin’s price has seen BTC’s market capitalization rise to $1.3 trillion, according to Coinglass data, and Bitcoin’s dominance remains at 53.7%.
US core PCE data
Attention will turn now to US core PCE, the Federal Reserve’s preferred gauge for inflation, which is expected to tick higher to 2.7% YoY, up from 2.6% in August. Hotter-than-expected US inflation figures could see the market rein in expectations of a 50 basis point rate cut in the November fed meeting, which is currently being priced in at around a 50% probability. This was down from 63% yesterday after stronger-than-expected US jobless claims, which showed that the number of Americans filing for initial unemployment benefits dropped four months later.
BNB rises ahead of CZ’s release
Changpeng Zhao (CZ), the founder of Binance and creator of its native token BNB, is scheduled to be released from custody today, bringing an end to his four-month sentence. CZ was sentenced as part of a plea deal for not implementing sufficient measures to protect against money laundering at Binance.
CZ is still a major shareholder at Binance, although he has been banned from day-to-day activities. He remains a powerful figure at the firm, and his strategic decisions could direct the firm and define its future.
CZ’s release comes as the BNB token is on the rise, pushing above the key 200 SMA resistance. The question is whether his release will cause a wave of profit-taking or propel BNB to new highs.
BNB’s Chaikin Money Flow (CMF), which tracks money flows into and out of the token, remains positive but has declined since September 21. This suggests that there are more buyers than sellers, but the strength of buyers is decreasing, suggesting a lack of conviction in the short term. The declining bullish bias in the MACD also supports this and could mean that the CZ release is a sell-the-news event. Sellers would need to break below the 200 SMA to gain momentum.
Author
Risk DisclaimerRisk warning: Our products are complex financial instruments which come with a high risk of losing money rapidly due to leverage. These products are not suitable for all investors. You should consider whether you understand how leveraged products work and whether you can afford to take the inherently high risk of losing your money. If you do not understand the risks involved, or if you have any questions regarding our products, you should seek independent financial and/or legal advice if necessary. Past performance of a financial product does not prejudge in any way their future performance.
