Bitcoin's price stands at $56,500 after forming lower lows and failing to reach a new all-time high. Experts predict a short-term decline to $40,000-$50,000 due to potential interest rate cuts.
Bitfinex analysts caution a 15-20% decline if rates are cut, noting this is based on historical cycles. A 25 basis point cut could initiate an easing cycle, followed by long-term price appreciation. Ryan Lee from Bitget supports this view, distinguishing current rate cuts from those during the 2007-2008 crisis.
Peter Brandt notes Bitcoin's consistent lower highs and lows indicate bearishness. However, Bitcoin has formed a right-angled descending broadening wedge, a bullish reversal pattern, which could lead to a recovery after the expected drop.
BTC's price could drop to $55,883, leading to either a bounce back to $60,000 or a further decline below $40,000, aligning with Bitfinex's projection. Weak trading volumes suggest Bitcoin might recover to $58,986, potentially reaching $60,000 and invalidating the bearish outlook.
