As a seasoned researcher with years of experience navigating the cryptocurrency market, I find myself standing at the precipice of uncertainty, much like a tightrope walker poised above the abyss. The current state of Bitcoin (BTC) is akin to the classic game of tug-of-war, where the forces pulling in opposite directions are evenly matched.
In a tough market situation, Bitcoin (BTC) has found it difficult to pick up speed again, consistently staying within the range of approximately $53,000 to $60,000 for six straight weeks.
Following the failure to maintain the significant $70,000 mark on August 1st, the leading cryptocurrency faces potential additional drops, especially with the looming Federal Reserve (Fed) meeting scheduled for September 18th. If a 0.50% interest rate reduction is implemented during this meeting, it could have a substantial influence on its value.
BTC’s Future Hangs In Balance
According to crypto analyst Doctor Profit’s latest findings, the market appears evenly balanced, with approximately a 50-50 chance of either a 0.25% or 0.50% reduction in interest rates. However, Doctor Profit is convinced that the Federal Reserve will choose the larger cut, as he believes strong action is necessary given the current economic circumstances. He states, “A 0.25% adjustment would be insufficient at this juncture.
The analyst contends that not reducing by 0.50% might trigger market chaos similar to the “Bloody Monday” incident on August 5, during which Bitcoin fell dramatically to around $48,900, causing a nearly 25% decrease in its value.
As per Doctor Profit’s perspective, it might involve recognizing the Federal Reserve’s past approaches and expressing a positive economic forecast, which could hypothetically lead to upcoming interest rate reductions.
Based on these possible situations, the analyst issues a caution about the possibility of market manipulation and “deceptive tactics” that could mislead investors on either side of the trade. Furthermore, geopolitical conflicts, especially those concerning Israel and Lebanon, increase complexity and may amplify market anxieties and market swings.
Although there are potential dangers in the near future, Dr. Profit maintains a positive outlook for Bitcoin’s long-term growth, especially up until the last quarter of 2025.
The analyst is confident that any temporary market panic will be offset by a resumption of loose monetary policy, as demonstrated by the recent surge of USDT and other liquidity infusions. He emphasizes that once interest rates are reduced, it’s expected that the Fed will again engage in money printing, laying the groundwork for economic recovery.
Bitcoin Price Analysis
By examining the recent Bitcoin price movement, analyst Ali Martinez has pointed out that it follows a parallel trend line on the hourly chart.
According to Martinez’s perspective, if Bitcoin manages to maintain its lower boundary, it might recover and reach between $60,200 and $62,000. However, he cautions that falling below the support level of $58,100 could cause a decline towards $55,000.
Looking at a more comprehensive viewpoint, Martinez points out worrying tendencies in the relationship between Bitcoin’s Market Value and Realized Value (MVRV). After falling below the $66,750 threshold in June, Bitcoin has been experiencing a downward trend, with no indications yet of this negative pattern reversing.
For Bitcoin to nullify this marker, it should surge beyond this point and subsequently establish itself as a new support level. Such a move might indicate the resumption of the anticipated surge towards the previous all-time high of $73,700, which was achieved in March this year.
In your writing, currently, Bitcoin – the leading digital currency – is being transacted at approximately $58,440, experiencing a decline of more than 3% within the past day.
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2024-09-17 03:05