Bitcoin Price Close Above This Will Trigger Rally to $70K, Will Fed Rate Cut Help?

Cryptonews John Brightwater September 18, 2024

Bitcoin Price Close Above This Will Trigger Rally to $70K, Will Fed Rate Cut Help?

Summary
Bitcoin’s price has recently recovered, exceeding $60,500, and analysts emphasize a crucial resistance level at $61,900 for potential upward movement. Market anticipation surrounds a Federal Reserve rate cut, with mixed opinions on its effects on Bitcoin. Historically, Bitcoin demonstrates breakouts following halving events, with October generally offering better performance than September. Political pressures further complicate projections on the potential rate cuts, heightening market speculation about future liquidity and price directions.

Bitcoin’s recent performance indicates a strong recovery, with the price surging by 4.5% in the last day, surpassing the $60,500 mark just prior to the Federal Open Market Committee (FOMC) meeting. Analysts note that Bitcoin must maintain momentum, requiring a break above the $61,900 level to enter a potential bullish trend. Historically, Bitcoin tends to exhibit a breakout approximately 150 to 160 days after a halving event, with late September 2024 being a key date for a possible reaccumulation breakout. Simultaneously, market expectations entail a Federal Reserve rate cut, projected to be between 25 to 50 basis points, which could provide additional liquidity, potentially supporting Bitcoin’s upward trajectory. However, economic experts, including Peter Schiff, caution that rate cuts might not benefit Bitcoin significantly and could instead provoke inflation by weakening the dollar. As the markets turn their attention towards the FOMC meeting’s outcome, the division remains concerning whether the cut will be 25 or 50 basis points, with major financial institutions like JPMorgan and Goldman Sachs anticipating a modest 25 basis-point reduction. Meanwhile, political dynamics add complexity as Massachusetts Senator Elizabeth Warren pushes for a more aggressive 75 basis-point cut, raising questions about her influence in the current political landscape. Overall, the Bitcoin community is closely observing these developments, as they may serve as crucial indicators for future price movements, with October historically showing better performance than September. Should Bitcoin break above the critical resistance level, a rally towards $70,000 could be on the horizon.

The price of Bitcoin typically demonstrates a cyclical pattern influenced by halving events, which occur approximately every four years, reducing the reward for mining by half. This reduction affects supply dynamics and has historically led to price surges following the event. Market sentiment indicates that September is often a challenging month for Bitcoin performances, while October tends to reveal an upward trend. Moreover, monetary policy shifts by the Federal Reserve significantly influence market liquidity and investor sentiment in both traditional and cryptocurrency markets, which in turn, impacts Bitcoin’s price.

In conclusion, Bitcoin’s future price trajectory hinges on critical technical levels and upcoming decisions by the Federal Reserve. Market participants remain optimistic about a potential rally if Bitcoin surpasses the $61,900 mark while analyzing the implications of Fed rate cuts on liquidity and inflation. As the October timeframe approaches, historical patterns suggest a possibility for positive price movements, contingent upon the resolution of the current market uncertainties.

Original Source: coingape.com