Analyst Doctor Profit predicts a new ‘Blood Monday’ for Bitcoin if the Fed opts for a 0.50% rate cut in its upcoming meeting. Bitcoin has been struggling between $53,000 and $60,000 for six weeks, following a crucial loss of the $70,000 level on August 1.
The analyst suggests that a smaller 0.25% cut would be insufficient, potentially causing market turmoil similar to the ‘Blood Monday’ on August 5. Doctor Profit warns of market manipulation and increasing geopolitical tensions, especially between Israel and Lebanon.
Despite short-term risks, the analyst remains bullish on Bitcoin's long-term prospects, citing potential expansive monetary policies and cash injections that could support a market recovery. The continuation of rate cuts and money printing by the Fed are viewed as key to this recovery.
Analyst Ali Martinez also highlights Bitcoin’s trading behavior within a parallel channel. Martinez suggests that Bitcoin could recover if the lower support level holds, targeting $60,200 or $62,000. A break below $58,100, however, could lead to further decline towards $55,000.
Broad market trends also indicate concerning signs, with Bitcoin needing to break above $66,750 to reverse its current downtrend. As of now, Bitcoin trades at $58,440, reflecting a 3% loss over 24 hours.
