Bitcoin (BTC) recently experienced a significant price correction after hitting a two-month high of $66,500. The cryptocurrency retracted around 6%, falling to $60,000. This dip is attributed to easing economic conditions, geopolitical tensions in the Middle East, and concerns about possible further rate cuts by the US Federal Reserve.
The geopolitical unrest led investors to seek safe-haven assets like gold. Moreover, economic indicators, such as expectations for further interest rate cuts from the Fed, contributed to the overall market sell-off. Bitcoin, Ethereum, and other cryptocurrencies saw liquidity outflows nearing $300 million.
Despite this downturn, crypto analyst VirtualBacon suggests a more optimistic outlook, highlighting the importance of the Bull Market Support Band. Historically, this band has acted as a safety net during price corrections. A weekly closure above $58,000 could signal a potential resurgence.
VirtualBacon pointed out two significant buy zones for Bitcoin: $62,500 and between $58,800 and $60,000. These zones align with the 200-Day Exponential Moving Average (EMA), serving as a key support level for Bitcoin's price movements.
The September jobs report will play a crucial role in shaping market sentiment. The report will provide insight into the current unemployment rate, which has potential implications for Bitcoin's price trajectory. An unemployment rate of 4.2% would be bullish, 4.3% neutral, and 4.4% or above warrants caution.
VirtualBacon suggests that as long as Bitcoin maintains a level above $58,000, it could form a higher low, setting the stage for a new price peak beyond $66,000. Macroeconomic factors will continue to be vital influencers on market sentiment.
