On September 19, following the rare 0.5% interest rate cut by the US Federal Reserve (Fed), Bitcoin aimed to turn the $62,000 support level. Cointelegraph Markets Pro and TradingView data revealed Bitcoin price strength throughout the Asian trading session.

With the Fed’s move, Bitcoin reached local peaks, rising to $62,600. This marks only the third time in history that a rate-cutting cycle has started with a 0.5% cut.

Subsequently, this rise caused short BTC positions to be liquidated in exchange order books. Data from CoinGlass showed that, at the time of writing, the 24-hour liquidation total was $128 million.

In this process, CoinGlass warned its users that “You should now reduce leverage or take profit and exit” and emphasized that investors should be careful.

A previous report suggested that after a 0.5% discount, Bitcoin price prediction could reach $64,000. However, it was difficult for the bulls to reach this target as significant resistance remained above.

Popular trader Jelle reported on the X platform that Bitcoin is “slowly trying to break through the resistance level.” Meanwhile, while the US dollar followed a volatile trend, the US Dollar Index (DXY) initially rose but then lost its gains and returned to the previous support level.

This situation also coincides with the analysis of trader Aksel Kibar, who stated that DXY is “sitting on the edge of the support level”. “A break could result in a sharp move towards 96,” Kibar said.

Former CEO of BitMEX, Arthur Hayes, turned attention to the Bank of Japan’s own interest rate decision, which will be announced on September 20. He stated that the strength of the Yen will affect Bitcoin price performance.

But from a broader perspective, trading resource The Kobeissi Letter issued an important warning to risk assets traders. He noted that interest rate cut cycles that start with a 0.5% cut will ultimately result in losses for US stocks.

Kobeissi said, “In 2001 the market fell by 31% and in 2007 there was a decline of 26%. “These were major crises,” he said, recalling past experiences. He also suggested that there was a contradiction between the Fed’s optimistic message and the scale of its policy rollbacks.

“If the Fed only started with 50% basis point cuts during crises, why would it start with 50% this time?” brought up the question.

Data from CME Group’s FedWatch Tool shows that another 0.5% cut at the next meeting is less likely than a smaller 0.25% follow-up cut. This means that investors need to be careful and follow market dynamics closely.

Especially for risky assets such as Bitcoin, history repeating itself and lessons learned from previous crises stand out as important factors affecting market movements. Therefore, it is critical for investors to make informed and cautious decisions.