In This Post:
- Bitcoin’s price may find support at $50,000.
- Fed rate cut talks might change the market trend for Bitcoin.
- Recession fears and global tensions impact Bitcoin.
Bitcoin prices are feeling the heat due to recession fears and global tensions. Speculations about a Federal Reserve rate cut in September could push Bitcoin to find support at $50,000. Here’s a look at what’s impacting Bitcoin’s price.
Bitcoin Price Consolidation and Support Levels
Bitcoin’s price chart shows a pattern that suggests it might pause before making a big move. Recently, Bitcoin’s price correction eased, finding support at the $60,000 level. This support is strengthened by a key moving average. However, poor job reports, tensions in the Middle East, and recession fears still weigh on the market. The flag pattern suggests Bitcoin might be preparing for its next move. The support at $60,000 could be crucial for buyers, especially if the market expects changes in Fed policy.
Fed Rate Cut Talks and Market Impact on Bitcoin
This week, the cryptocurrency market saw a drop due to several negative events. The decline started when Bitcoin fell from the $70,000 resistance level. Geopolitical tensions and recession fears added to the selling pressure. A poor job report has increased the chance of a dovish shift in the market. This could lead to rate cuts in September. According to Nick Timiraos of The Wall Street Journal, these reports might prompt the Federal Reserve to change its policy to stabilize the economy.
Citigroup and JPMorgan expect the Fed to cut interest rates by 50 basis points (bps) in September. They also expect more cuts later in the year. Data from the CME Group shows a high chance of rate cuts. JPMorgan thinks the Fed might cut rates to about 3%, continuing until the third quarter of 2025. These rate cuts would make borrowing cheaper and might encourage investments in assets like Bitcoin. This could help Bitcoin find support at key levels like the 200-day EMA and $50,000.
Bitcoin’s Support Levels and Future Moves
For the past five months, Bitcoin has moved sideways between two downsloping trendlines. This flag pattern usually means a pause before a big move. During the market correction, Bitcoin’s price fell from $70,000 to $59,800, a drop of 14.84%. The market cap also dropped to $1.178 trillion. The recent fall to $60,000 might increase selling pressure, possibly pushing Bitcoin down to $51,000. A bearish crossover between the 20-and-50 EMAs shows that sellers are gaining control. However, Bitcoin could rebound from the lower trendline at $50,000-$51,000. This might start a rally to regain the $60,000 level, followed by $70,000. If the Fed cuts rates, it could support the market and help Bitcoin recover. Bitcoin’s current price is influenced by recession fears, global tensions, and talks of Fed rate cuts. The flag pattern suggests a pause before the next move, with potential support at $50,000. Investors should watch these developments as they navigate the volatile Bitcoin market.
