Bitcoin Analysts Split on Outlook After Federal Reserve Meeting

Following the Federal Reserve's interest rate hike in the US, analysts are divided on Bitcoin's outlook. According to Crypto Dan, a sharp decrease in unspent UTXO indicates that the market may be shifting from bearish to bullish. He believes that this metric behavior is similar to previous bear phases and that the current decline has enough momentum to bring an end to the bear cycle.

Crypto Dan warned that short-term negative factors such as the rate hike and the failure of the CLARITY Act could pressure market sentiment, but are unlikely to drastically change the direction. On the other hand, analyst Darkfost pointed out that after the Federal Reserve meeting, the Bull Score Index shifted to a bearish mode.

The Bull Score Index is a technical indicator that assesses the state of the bull market and buyer strength, considering spot trading volumes, futures trader activity, coin movements on exchanges, and network activity. Over the week, the index fell from 80 to 30, indicating a decline in demand for Bitcoin and decreasing profits for short-term holders.

Glassnode noted that Bitcoin has fallen below the lower boundary of a multi-week range and the True Market Mean, which could lead to a fallback to the short-term holder cost basis around $70,000. Michaël van de Poppe, founder of MN Trading, believes that digital gold is facing resistance just above $80,000, and breaking through this barrier would be necessary to gain momentum.

Investor sentiment is also reflected in the dynamics of spot Bitcoin ETFs, which recorded outflows of $450 million and $295 million on September 15 and 16, respectively. Analysts at Coinbase Markets warned that the next few trading sessions will show whether these outflows were an isolated risk reduction or the start of a broader change in dynamics.