Over the last 24 hours, price action has remained above the key support level and has had a local bullish expansion - confirming the short squeeze from yesterdays update.

Bitcoin’s local market structure has shifted bullish with consecutive higher highs and higher lows. This occurred when the local support level was reclaim, the next target is the range high resistance - more discussed in the technical analysis section.

It looks like Bitcoin has confirmed the deviation that was discussed a couple issues ago - path of least resistance is higher which will continue the short - squeeze.

In recent news events, A 0.50% Fed Rate Cut Could Raise Alarm for Bitcoin and Snapshot, Popular DAO Voting Platform, Finally Moves On-Chain

Today’s report will also include:

• Updated Technical Analysis

• Other key market developments

• Daily Wisdom

Bitcoin Price Analysis

Current Price Action

If you refer to yesterday’s update, you will notice the importance of the support level that Bitcoin had to hold - this has now come to fruition with a local bullish expansion.

Price action reclaiming a level like this has confirmed a deviation - this is consider a bullish local sign.

A deviation like this means there are trapped shorts at the low which places emphasis on a short squeeze. The current price action you are looking at is a prime example of a short squeeze.

Potential Strong Bullish Expansion

In yesterdays update, we also noted a potential break-out zone where a reversal was prominent - this is slowly coming to fruition in current price action.

There is a clear break from the breakout zone, this has shifted the local trend. Continuing this trend will increase the probability of price action rotating towards the highs.

These highs are significant on the chart as it indicates resting liquidity. If price action penetrates these highs, there is a probity of an acceleration in the current short squeeze.

Bitcoin Insider will continue to monitor these time sensitive price development for the next update.

Latest Market News

Snapshot, Popular DAO Voting Platform, Finally Moves On-Chain

Snapshot Labs, the creator of an off-chain voting platform used by 96% of decentralized autonomous organizations (DAOs), including major DeFi projects like Lido and Aave, is introducing a blockchain-based option on Ethereum’s layer-2 network, Starknet.

This new governance protocol, called Snapshot X, leverages storage proofs, a cryptographic innovation developed by StarkWare, Starknet's main developer.

Storage proofs enable users to prove the existence of assets on one blockchain without needing a third party to transfer them to another. According to StarkWare, this technology enhances security and reduces costs by eliminating intermediaries.

With Snapshot X, users can participate in governance based on assets held on one blockchain, without moving tokens or incurring gas fees.

A 0.50% Fed Rate Cut Could Raise Alarm for Bitcoin

Friday’s U.S. jobs report appears to have paved the way for the Federal Reserve to begin cutting interest rates, with the first reduction likely to occur next week. However, what might seem like a positive liquidity boost could start off poorly for risk assets, including cryptocurrencies, if the Fed reduces rates by 50 basis points (bps) on September 18, according to 10x Research.

Interest rate adjustments are measured in basis points, where 1 bps equals 1/100 of a percentage point. Central banks, like the Fed, typically change rates in 25 bps increments, but larger adjustments, such as 50 or 75 bps, indicate urgency. During the 2022 tightening cycle, the Fed implemented several larger hikes to combat inflation, which led to increased risk aversion in the markets.

A 50 bps rate cut next week could signal significant economic concerns or a need to catch up with an impending slowdown, potentially causing investors to reduce their exposure to risk assets like bitcoin (BTC) and stocks.

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Daily Wisdom

Bitcoin Insider bouncing back to work, See you in the next one! 👊