As the US federal rate cut rapidly approaches, analysts at QCP Capital, a global digital asset trading firm and market maker, have now shared their prediction on how this development could affect the price of Bitcoin.
According to analysts, the upcoming US nonfarm payrolls report and GDP data on Friday will play a crucial role in shaping Bitcoin. market sentiment.
In particular, these economic indicators are expected to provide further clarity on whether the Federal Reserve will begin a rate-cutting cycle at its next Federal Open Market Committee (FOMC) meeting on September 18.
Economic data will influence Bitcoin market movements
QCP analysts have revealed that anticipation of these events has led to cautious positioning among market participants, indicating possible “moderate volatility” for Bitcoin in the near term.
Scheduled for release on September 6, the US nonfarm payrolls report is one of the key economic metrics that could very well influence the Federal Reserve Interest Rate Decisions.
The previous report earlier this month showed an increase in the The unemployment rate in the United States rises from 4.1% to 4.3%triggering a notable drop in the global financial market. Notably, this increase raised concerns that the Federal Reserve might be lagging behind in its efforts to adjust rates accordingly.
In addition to payrolls data, the upcoming US GDP report due out today could also impact Bitcoin price performance, although QCP Capital analysts believe its impact on the cryptocurrency market may be limited. The analysts noted:
Tonight’s US GDP report is unlikely to be a major event for cryptocurrencies, especially if it reinforces the current narrative of a slowing US economy.
Bitcoin Market Performance and Price Action Outlook
Amidst these upcoming economic developments, Bitcoin has returned to a downtrend after a brief recovering to over $61,000 yesterday.
Bitcoin is currently trading at $58,285, which marks a 4.3% drop over the past 24 hours. This drop has led several market analysts to offer their updated information on the short-term outlook for the asset.
For example, Elja Boom, a well-known cryptocurrency analyst on X, commented on the ongoing consolidation: declaring:
There are no signs of a breakout yet. Consolidation could occur until October before the breakout. I am confident of a breakout in Q4, but before that, there will be more volatility.
Meanwhile, another analyst, known as ‘Cryptocurrency Titan’ on X, provided A short-term update that highlights a key resistance level. The analyst highlighted the $59,600 price point as an important level for Bitcoin.
According to the analyst, if Bitcoin reclaims these price levels and breaks the cloud turn, “the clouds would move from resistance to support“and this could result in a major bullish rally for Bitcoin.
#Bitcoin Short term update
Yeah #BTC recovers $59,600 and breaks the turn of the clouds, the clouds would go from resistance to support.
This could trigger an upward movement.
image.twitter.com/1XdS3zeBCZ
– Cryptocurrency titan (@Washigorira) August 30, 2024
Featured image created with DALL-E, chart by TradingView
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