Bitcoin Price To ‘Chop’ Around This Range Until Q4, Analysts Say

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As a seasoned analyst with over two decades of experience in financial markets, I’ve witnessed countless market fluctuations and learned to read between the lines. The recent Bitcoin price rally, following Jerome Powell’s speech, is no exception.

Over the past few days, the surge in Bitcoin‘s price following Jerome Powell’s recent speech has been a hot topic among crypto enthusiasts, including myself as a researcher. The team at QCP Capital, a leading trading firm, has recently added their insights to the discussion, suggesting that Bitcoin’s current position within the $61,000 and $70,000 consolidation range is noteworthy.

How Interest Rate Cuts Could Affect The Bitcoin Market

According to QCP Capital’s recent analysis, the rise in Bitcoin prices following the Federal Reserve’s suggestion of reduced interest rates prompted their response. The increase appears to have been mainly fueled by direct Bitcoin demand rather than transactions involving futures or derivative contracts, as indicated by on-chain data.

As reported by QCP, the costs associated with holding long positions in the futures market remained constant throughout the rally. However, they pointed out that if Bitcoin manages to hold its ground at around $62,000, there could be an increase in leveraged long positions, particularly as we near the end of the summer vacation period.

Additionally, the QCP report indicates a substantial rise in bullish option contracts, notably in the regions of $62,500 – $63,000 strike prices, preceding Powell’s talk at Jackson Hole. Notably, the trading firm stated:

Even on the backend, bulls continue to pile on to their long bets in Dec and Mar (80k to 85k strikes).

According to Powell’s confirmation, the Federal Reserve plans to lower interest rates significantly within the next month. As per QCP analysts, this move could have a positive impact on Bitcoin prices, implying that the Federal Reserve is adopting a careful stance towards the economy. On the other hand, a more substantial cut of 50 basis points might signal the Fed taking decisive action to prevent the economy from experiencing a significant downturn.

Over the last fortnight, there’s been a decrease in selling pressure and an inflow of stable capital into Bitcoin spot exchange-traded funds (ETFs). However, QCP analysts anticipate that Bitcoin prices will continue to hover between $61,000 and $70,000 until the end of 2024’s fourth quarter. The analysts also suggest that the upcoming US elections, potentially accompanied by bullish seasonality, could serve as a trigger for new record highs.

Bitcoin Price At A Glance

Currently, the cost of Bitcoin is approximately $64,250, marking a minor 0.5% rise over the last day. Based on information from CoinGecko, the leading cryptocurrency has experienced a significant 8% growth in value within the past week.

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2024-08-25 11:44