Bitcoin (BTC) climbed 2.16% to $78,100 on September 18, gaining ground even as the Bank of Japan increased interest rates to 1.5%—the highest level in 31 years. The rate hike marked an escalation in Japan's monetary policy response to inflationary pressures, occurring just two days after the US Federal Reserve raised rates by 25 basis points.
The BoJ cited rising consumer prices as the rationale for the increase, noting that Japan's inflation headline reached 1.9% in August 2026, slightly below the central bank's 2% target. BoJ Governor Kazuo Ueda stated that the central bank was committed to preventing inflation from crossing the 2% threshold, indicating that additional rate increases may follow. "If risks of underlying inflation overshooting 2% materialize, that could have a negative impact on Japan's economy," Ueda said.
Market observers had anticipated potential weakness in Bitcoin following the hike due to concerns about unwinding yen carry trades. Instead, the JPY/USD exchange rate fell to 0.00633, its lowest level since September 3. Prior to the BoJ's announcement, US Treasury Secretary Scott Bessent had pledged US support for the yen after the currency dropped to a 40-year low.
Technical Analysis and Market Indicators
Bitcoin moved above a falling trendline resistance on the four-hour chart, supported by increased buying volume. For a strong uptrend confirmation, BTC needs to establish a higher high above $79,890. The Relative Strength Index (RSI) reading of 63 and positive Awesome Oscillator bars suggest continued bullish momentum, with potential for Bitcoin to retest the September 3 highs of $82,000 if buying pressure sustains through the weekend.
Glassnode data indicated that Bitcoin has moved above its True Market Mean price of $76,660, the average price at which secondary market traders acquired their holdings. This move suggests traders are now holding unrealized profits and that Bitcoin has entered a bullish regime. Immediate resistance levels are positioned at $80,000, the average purchase price for Bitcoin held by treasuries, and at $85,000, where Bitcoin ETFs break even.
A CryptoQuant analyst noted that 4,613 Bitcoin recently transferred to Binance, potentially signaling selling intent. If profit-taking accelerates, Bitcoin could test support at the $75,000 psychological level.
