Bitcoin faces key resistance at $64K

Bitcoin’s recent price action shows the bulls’ weak momentum in staying above the $63K mark. The major digital asset surge following the Federal Reserve’s interest rate cut reached a peak of $64K before falling to the 62.6K level at the time of this publication.

Anticipation of significant volatility surrounding the asset, particularly with the Federal Reserve’s meeting, changed the market dynamics in the digital space
Bitcoin’s price soared past $61,000 In the lead-up to this meeting, however, it faced considerable fluctuations after the Federal Reserve announced a 0.5% rate cut on Wednesday. Despite this, bullish momentum returned, propelling the cryptocurrency to just above $64K late Friday, marking its highest valuation, in over three weeks.

On Friday, MicroStrategy continued its aggressive acquisition strategy, revealing the purchase of 7,420 BTC for $458.2 million. The company now possesses 1.27% of the total Bitcoin supply.

The business intelligence firm purchased 7,420 BTC following its recent issuance of senior convertible notes on Friday. CEO Michael Saylor disclosed that the company bought the digital asset at $61,750 per Bitcoin. This acquisition totals $458.2 million, increasing the firm’s Bitcoin reserves to 252,220 BTC.

Nevertheless, the asset struggled to sustain this upward trajectory and has since retreated by about $1,000, currently trading near $62.6K. Furthermore, there are indications that this upward movement may have reached its conclusion, with the possibility of further declines for Bitcoin.

Additionally, the SEC has approved BlackRock’s application to list and trade option contracts on its iShares Bitcoin Trust (IBIT). This approval, announced in a filing on Friday, permits the trading of physically settled options, meaning that the exercise of a contract will result in the actual delivery of Bitcoin.

Options trading represents a type of derivatives trading that provides investors with the right, but not the obligation, to buy or sell an asset at a specified price within a designated period.