As global economic uncertainty continues, Bitcoin has faced increased volatility, struggling to maintain crucial resistance levels lost recently. Despite this precarious state, emerging signs might favor Bitcoin's price and the broader crypto ecosystem.
One promising sign is the potential for further interest rate cuts by the US Federal Reserve. Goldman Sachs Asset Management expects the Fed to implement three consecutive 25-basis point rate cuts in September, November, and December. A weak labor market could even prompt the Fed to start with a 50-basis point cut.
Currently, money markets are pricing in a total of 100 basis points of rate cuts for the year. Fed Chair Jerome Powell's recent dovish comments indicate the central bank's openness to further rate reductions to address labor market cooling. This stance is generally positive for risk assets, including Bitcoin.
Anticipation of the rate cuts recently surged Bitcoin's price to a one-month high of $65,000. However, continued volatility dropped the BTC price back to $57,900, with it currently trading above $60,000.
Despite Bitcoin's rebound, analysts warn of potential price declines. Crypto analyst Ali Martinez identified a sell signal on Bitcoin's hourly chart using the TD Sequential indicator, suggesting another price correction could occur. The key support levels are near $58,000 and $57,200.
Overall, despite potential short-term corrections, Bitcoin's macro price range between $57,000 and $70,000 has remained intact for the past six months after correcting from an all-time high of $73,700.
