Bitcoin investors are bracing for a potential price decline following the anticipated Federal Reserve interest rate cut in September. Despite the market’s optimistic sentiment regarding the rate cut, analysts warn that it could trigger a sell-off in Bitcoin.
Bitfinex analysts have predicted a 15-20% decline in Bitcoin’s price following the rate cut. They argue that September is historically a volatile month for Bitcoin, and the combination of a rate cut and market uncertainty could exacerbate volatility.
The analysts point to Bitcoin’s price history, noting that it has traded at $46,000 in the past. This level is seen as a potential support level for Bitcoin, and a break below it could signal further downside.
Markus Thielen, head of research at 10xResearch, shares the sentiment that Bitcoin needs to reach the low 40,000s to enter the next bull market. He believes that a dip to this level would provide a good entry point for investors.
Joe Consorti, a Bitcoin Layer analyst, believes that $60,000 is no longer a speculative high but rather a consolidation zone where long-term holders accumulate.
Daan Crypto Trades, a well-known crypto trader, suggests that Bitcoin is currently struggling to break out of its bull market support band. This indicates that there is still uncertainty and indecision among investors.
Investors often view Bitcoin as a riskier asset compared to traditional investments like bonds and term deposits. When interest rates are cut, the relative attractiveness of Bitcoin can increase as investors seek higher-yielding assets.
While the market is generally optimistic about the upcoming Fed rate cut, there is a growing consensus that it could lead to a short-term decline in Bitcoin’s price. The potential for a price drop to the $40,000 level is a significant concern for investors.
However, it’s important to note that the cryptocurrency market is highly volatile, and predictions can be subject to change. Ultimately, the future direction of Bitcoin’s price will depend on a variety of factors, including macroeconomic conditions, investor sentiment, and technical analysis.
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Author: Sb
This post was originally published on cryptonewsfarm.com
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