Bitcoin Stuck Within a Corrective Wave: Another Lower High Could Be on the Horizon!
Bitcoin has managed to defend the $55,000 mark and is now showing signs of recovery, currently testing the $58,000 level. Traders are closely watching the $60,000 resistance area, a key hurdle that, if surpassed, could trigger a stronger upward momentum and boost market optimism. But is this just a calm before the storm, or has Bitcoin’s rally run its course?
Let’s dive into expert insights to understand what’s next for your crypto investments.
Matthew Dixon, CEO of Evai, remains bullish on Bitcoin’s future, suggesting that the recent price correction might be over. He highlighted that the latest Consumer Price Index (CPI) data was the final piece of the puzzle needed by the Federal Reserve to make a decision on interest rates.
Dixon believes that a 25 basis point hike is “nailed on” for next Wednesday, which could serve as a major catalyst for a Bitcoin rally extending through September and October.
According to CME FedWatch, the likelihood of a 25-basis-point rate cut on September 18 has surged to 85%, up from 66% the previous day. This optimism, driven by favorable inflation data, has helped Bitcoin rise above $58,000 as traders grow more confident in the Federal Reserve’s potential policy shift. Conversely, the probability of a more aggressive 50-bps rate cut has decreased to 15%, indicating a more conservative outlook.
This evolving scenario has led many analysts to update their Bitcoin price predictions, adjusting forecasts based on the Fed’s anticipated actions.
Despite the market’s leaning towards a rate cut, Dixon cautioned that “it’s never 100% in reality.” Responding to a user on X who questioned the certainty of the cut, Dixon warned that if the Fed doesn’t follow through as expected, it could create significant turbulence across financial markets, underscoring the high stakes and potential ripple effects on the crypto sector.
The global crypto market cap rose 2.12% to $2.04 trillion, with total market volume increasing by 11.6% to $70.89 billion. Stablecoins contributed a staggering 91.87% of this volume, accounting for $65.13 billion. Despite the overall market growth, Bitcoin’s market cap slipped slightly to $1.148 trillion, with its dominance dipping to 56.21%. However, Bitcoin’s trading volume surged by 19.3%, indicating heightened activity amid growing market confidence.
As Bitcoin tests new levels, the question remains: Is this the start of the long-awaited bull run? Only time will tell, but the market’s optimism is certainly setting the stage for an exciting period ahead.
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