Improved Market Sentiment Follows Fed Rate Cut.

$Bitcoin (BTC.CC)$ Bitcoin has surged to over $62,000, its highest level in nearly a month, following the Federal Reserve's decision to cut interest rates by 50 basis points. The outsized rate cut, the first in over four years, has reignited market confidence and driven increased trading activity in the cryptocurrency markets.

After weeks of cautious sentiment dominating the market, the shift to a more neutral stance signals renewed confidence among investors. With neither excessive pessimism nor greed prevailing, investors are expected to gradually re-enter the market, boosting trading volumes and contributing to a steady price increase for Bitcoin.

As of press time, Bitcoin is trading at $61,967, having briefly reached $62,501 earlier on Thursday. Over the past 24 hours, trading volume has surged by 12%, totaling $46 billion. The ratio of Bitcoin's transaction volume in profit to loss has reached its highest level since July at 3.48, indicating that the majority of transactions are currently profitable.

Bitcoin's recent price spike has pushed it above the critical resistance level of $61,388. While this rally is notable, Bitcoin is likely to retest this resistance. Since the support floor flipped to resistance in early August, BTC has only managed to break through it once, with each rally attempt facing strong selling pressure leading to a downtrend. A failed retest could see Bitcoin drop to seek support around $54,302.

However, if the retest succeeds and BTC breaks above the resistance, the uptrend will be confirmed, with Bitcoin potentially targeting $64,312.