As Bitcoin (BTC) faces bearish pressure in the short term, analysts estimate that the maiden cryptocurrency’s next lifeline might emanate from the Federal Reserve’s decisions.
In this line, market analyst Cristian Chifoi, in an X post on June 26, suggested that the next Fed interest rate cut is likely to elevate Bitcoin to an all-time high above $150,000.
The analysis was based on parallels between the current market scenario and past instances of Fed rate cuts. Reflecting on the Fed’s actions in July 2019, the expert noted the rapid ascent of Bitcoin following the first rate cut, with the asset surging from $7,400 to $14,000 within weeks.
Bitcoin price chart analysis. Source: TradingView
Fast-forward to 2024, and Chifoi opines that the Fed’s impending rate cut, anticipated for September but possibly occurring in July or November/December, could have a markedly different impact.
Bitcoin’s next record high target
Chifoi outlined two potential scenarios: The initial rate cut could spur a euphoric market response, driving Bitcoin towards the $90,000 to $100,000 range. This leg-up would complete either a mid-cycle or full-cycle rally, with updates to market views as events unfold.
Unlike in 2019, the analyst noted that Bitcoin’s price may not experience a downtrend post-rate cut. With the introduction of spot Bitcoin exchange-traded funds (ETFs), Wall Street involvement, and Bitcoin’s exponential market cap growth, Chifoi stated that Bitcoin has transitioned from a speculative asset to a more stable investment. This stability suggests that Bitcoin could avoid a significant downtrend and continue its upward trajectory.
The analyst predicted that as Bitcoin reaches the $1.4 trillion market cap mark, we can expect a broader trend change, potentially driving Bitcoin to an extended leg of $120,000 to $170,000.
“$1.4 trillion $ is my next target before we can talk about trend change, just as BTC next leg up, and maybe an 120-170k extended leg to complete the cycle,” he said.
In the meantime, Bitcoin continues to battle with bearish pressure as the asset seeks to maintain the $60,000 support. In looking at the next price trajectory, crypto trading expert Michaël van de Poppe, in an X post on June 27, said attention is on $60,000 as the level could spark a bullish divergence.
The Dutch crypto expert noted that this critical price point may be reached next week. This optimism is partly due to the impending listing of an Ethereum (ETH) ETF. The ETF is expected to inject fresh momentum into the broader cryptocurrency market.
Bitcoin price analysis chart. Source: TradingView
Bitcoin price analysis
By press time, Bitcoin was trading at $61,120 with daily losses of almost 0.3%. In the weekly timeframe, BTC is down by over 7%.
Bitcoin seven-day price chart. Source: Finbold
In summary, Bitcoin’s weekly chart shows consolidation, and investors should watch the $60,000 crucial support level, with resistance levels around $64,000 and $66,000.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
