Why is Bitcoin price up today?

Bitcoin (BTC) price has jumped by 4% in the last 24 hours to reach over $86,000 on March 20. At its intraday high, the cryptocurrency was trading for $87,470, signaling modest profit-taking among traders.

Top catalysts that have driven Bitcoin prices higher today include:

Bitcoin rises after Fed calms trade war bears

Bitcoin rose as the Federal Reserve signaled it still expects to cut interest rates twice later this year, easing investor concerns over prolonged monetary tightening.

Key takeaways from the Federal Open Market Committee’s meeting on March 19:

• The Fed kept its benchmark rate on hold while acknowledging that tariff-driven inflation pressures may be “transitory.”

• Chair Jerome Powell’s measured tone on recession risk, stating it was “not high,” reassured risk-on investors.

• The Fed trimmed its growth forecast, fueling a bond rally and reinforcing expectations of lower borrowing costs in the future.

• Lower interest rates make risk assets like Bitcoin more attractive, as they reduce the opportunity cost of holding non-yielding investments.

Long-term Bitcoin holders turn to accumulation

Bitcoin’s ongoing price rise coincides with signs of accumulation among its long-term holders: entities holding BTC for more than 155 days.

Key points:

• Long-term holder (LTH) spending pressure is waning, as indicated by a slowdown in the Binary Spending Indicator and a rise in LTH supply.

• A greater willingness to hold rather than sell suggests a shift away from sell-side distribution.

• A brief but sharp spike in LTH distribution (the red bars in the chart below) occurred when Bitcoin dropped to four-month lows, as some investors took profits.

• Bull markets typically see sell-side pressure from LTHs balanced by new demand, and this cycle has absorbed a similar volume of LTH profits as previous ones.

• “This perhaps alludes to a degree of saturation being reached among Long-term holders, where they have completed a majority of their sell-side activity within the current price range,” wrote Glassnode analysts in their latest weekly report.

Bitcoin bounces from technical support

Bitcoin price rise today comes after testing the lower trendline of its prevailing ascending channel pattern.

What to note:

• Bitcoin has been trending higher inside the ascending channel since March 9.

• The cryptocurrency has since tested the channel’s lower boundary thrice, the latest being on March 18.

• The first two scenarios led to 7.50% and 6.60% bounce — while the current one preceded 7.60% gains.

• As of March 20, BTC/USD was facing stiff resistance around the channel’s upper boundary, aligning with the 200-4H EMA (the blue wave) near $87,830.

• A decisive pullback may lead the pair initially toward the 50-4H EMA at around $83,900.

• A further correction could have it test the channel’s lower boundary as support, aligning with $82,400, which served as support between March 16 and March 17.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.