Bitcoin Price Eyes $60K Amid Fed Rate Cut & Gold Surge
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Bitcoin (BTC) ended last week holding above the key support level of $58,000, despite hitting strong resistance between $60,000 and $61,000. After spending the past six months in a bearish correction, Bitcoin is showing signs of a potential recovery.
Are we looking toward a bullish q4?
The fourth quarter, which is often a bullish period for the crypto market, is just around the corner. Investors are hopeful for a shift in momentum after months of downtrend, with signs of a rally starting to appear.
Gold prices hit an all-time high of $2,588 earlier today, which could be a positive signal for Bitcoin and the wider crypto market. Historically, a bullish move in Gold often points to similar trends in Bitcoin and altcoins in the short term.
US Federal Reserve Expected to Cut RatesAfter years of managing inflation, the US Federal Reserve is expected to announce its first interest rate cut since the pandemic this Wednesday. Recent inflation and employment data have increased the odds of this happening, which could impact both traditional markets and cryptocurrencies.
Up to 67% odds of a 50 bps cut as the Asian session starts.
Going to be a risk on day in the U.S. tomorrow. pic.twitter.com/wcPoukA4F2
Meanwhile, central banks in Europe and Canada have already made several rate cuts this year, indicating a global shift toward easing monetary policy.
What Does This Mean for Bitcoin?
A Fed rate cut could boost liquidity, which is often seen as a positive sign for riskier assets like Bitcoin. Additionally, the upcoming US election will likely have a major impact on the crypto industry, with the outcome influencing regulations and market trends for years to come.
Bitcoin Price Technical AnalysisDespite the optimism, Bitcoin could still drop to around $54,000 if bulls fail to defend the $58,000 level. Some analysts suggest that the Fed’s rate cut could turn into a “sell-the-news” event, causing short-term volatility.
OK LET'S BUY $BTC CUT RATES ARE COMING NEXT WEEK WE ARE GOING TO MAKE IT ANON pic.twitter.com/ZpQSACHSdu
— Alejandro₿TC (@Alejandro_XBT) September 15, 2024However, if Bitcoin consistently closes above $60,000 in the coming days, it could invalidate the bearish outlook. This could also push Bitcoin’s dominance toward 60%, delaying the anticipated altcoin season.
As Bitcoin navigates this crucial period, the market is watching closely to see whether it will break through resistance or face another downturn.
What do you think? Will Bitcoin’s bullish run continue how it is expected?