Bitcoin (BTC) is poised to surpass $65,000, according to on-chain data.

Yesterday, Bitcoin (BTC) surged more than 6% after Federal Reserve Chairman Jerome Powell announced a policy adjustment and hinted at a possible 25 basis point interest rate cut at the next meeting on September 18. This unexpected news has led to Bitcoin’s recent volatility, with prices swinging unpredictably in recent weeks.

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Important on-chain data from CryptoQuant provides a glimmer of optimism. According to the data, traders are preparing for further price increases.

As the market digests the Fed’s new stance, all eyes are on Bitcoin to see if this marks the beginning of a new bullish phase.

Bitcoin data shows market optimism

Bitcoin is trading above the $63,000 level and gaining momentum as it prepares to surpass the critical $65,000 level.

On-chain data from CryptoQuant reveals growing optimism in the market, highlighting an important trend that could lead to higher prices. Specifically, Bitcoin exchange reserves The value of Bitcoin on centralized exchanges has fallen to an all-time low. Since the end of July, the supply of Bitcoin on exchanges has fallen from over 2.75 million to around 2.67 million, a 3% drop in just 30 days.

This decrease indicates that there are fewer Bitcoins available for trading on exchanges, which could lead to a supply shock, a situation where demand outstrips supply, potentially leading to a price spike. As Bitcoin availability on exchanges decreases, the potential for price spikes increases.

As Bitcoin starts to gain strength, the market is closely watching this trend, which could push Bitcoin into a new bullish zone.

Bitcoin Price Action: $65,000 Next?

After two weeks of volatility and consolidation, Bitcoin is currently trading at $64,100 at the time of writing, which puts it above the crucial 200 daily level. Moving Average (MA).

This level is essential for bulls to maintain the uptrend on a higher timeframe. For the price to break the $65,000 level, it must confirm its bullish structure by staying above the $57,500 level. Ideally, it is better to stay above the 200-day exponential moving average (EMA), which is located at $59,538.

These levels are vital for the bullish momentum to continue. Holding above them would indicate market strength, boosting confidence among traders and investors. The data on the decline in Bitcoin’s foreign exchange reserves and the central bank’s policy announcement were met with optimism. Investors are increasingly expecting Bitcoin to rise in the coming months, supported by these bullish indicators.