Bitcoin (BTC), as global economic uncertainties loom, has seen increased volatility. It is now struggling to keep its footing over critical resistance levels that it lost in the last month. Although the largest cryptocurrency is still in a vulnerable position, there are some signs that could be positive for BTC and the wider crypto ecosystem.
Fed rate cuts signal hope for bitcoin price recovery
A further rate cut by the US Federal Reserve later in the year would be a positive development. According According to Walter Bloomberg, a market expert, Goldman Sachs Asset Management predicts the Fed will make three successive 25 basis point cuts between September and December.
Gurpreet Garewal is a Goldman Sachs macro-strategist who noted that the Fed could adopt an aggressive strategy, starting by cutting 50 basis points.
Refinitiv reports that money markets currently price in 100 basis point rate reductions for the entire year. The outlook is in line with comments Fed Chairman Jerome Powell’s dovish remarks last week suggested the central banks is willing to reduce rates further to deal with signs of cooling on the labor market. A dovish stance like this is usually seen as positive, especially for Bitcoin.
The anticipation of a rate reduction had a direct impact on Bitcoin’s price. It surged up to an all-time high of $65,000 by the end of last week. However, continued volatility BTC fell back to $57,900 on Tuesday, but since Wednesday it has recovered to trade at more than $60,000.
Analysts Warn of Potential Price Reductions in the Future
Despite Bitcoin’s recent rebound above $60,200 on Friday, analysts are warning investors to keep an eye out for further price declines as the largest cryptocurrency There are no clear signs that strong catalysts exist.
Crypto analyst Ali Martinez has identified A sell signal was generated on the Bitcoin chart hourly using the TD Sequential Indicator, which suggested that a price correction may be imminent.
This week, $58,000 has proven to be an important support level for cryptocurrency. If the level is breached, then another major support As seen in the chart of the BTC/USDT, the level that will be reached soon is the $57200 mark.
However, should this scenario play out, the token’s overall macro range would remain intact as this has been part of BTC’s price consolidation between $57,000 and $70,000 for the past six months following the correction from all-time highs of $73,7000.
Chart from TradingView.com, image courtesy of DALL-E
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Source: www.newsbtc.com