As Bitcoin (BTC) faces a challenging market environment, it has struggled to regain momentum, hovering around the $53,000 and $60,000 levels for six consecutive weeks.
After losing the crucial $70,000 threshold on August 1, the largest cryptocurrency remains at risk of further declines, particularly with the upcoming Federal Reserve (Fed) meeting on September 18, where a 0.50% rate cut could significantly impact its price.
The future of BTC is at stake
Recent insights from cryptocurrency analyst Doctor Profit suggest The market is very divided, with the chances of a 0.25% or 0.50% rate cut being equal (50%). However, Doctor Profit is confident that the Fed will opt for the larger cut, citing the need for decisive action in the current economic climate. He notes: “A 0.25% cut is simply too little for where we are now.”
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The analyst argues that failure to implement a 0.50% rate cut could trigger market turbulence reminiscent of Blood Monday. experienced On August 5, when Bitcoin dropped to lows of $48,900, resulting in a price drop of almost 25%.
According to Doctor Profit, this could include recognition of the Fed’s past strategies and an optimistic outlook for the economy, potentially paving the way for the future. rate cuts.
Given these possible scenarios, the analyst warns of the possibility of market manipulation and “scams” that could deceive investors on both sides of the market. In addition, geopolitical tensions, particularly in relation to the situation between Israel and Lebanon, add another layer of complexity and may exacerbate fears and market volatility.
Despite the short-term risks, Doctor Profit remains optimistic about Bitcoin’s long-term prospects, particularly through the end of Q3 2025.
The analyst believes that any short term panic Ultimately, it will be countered by a return to expansionary monetary policy, as seen in the recent influx of USDT and other cash injections into the market. It highlights that once rate cuts are implemented, money printing by the Fed is likely to resume, providing a foundation for recovery.
Bitcoin Price Analysis
Taking a deeper look at the current price action, analyst Ali Martinez recently noted that Bitcoin is trading within a parallel channel on the hourly chart.
Martinez holds Bitcoin could bounce towards the mid- to upper levels if the lower boundary holds, targeting $60,200 or $62,000. However, Martinez warns that a break below the $58,100 support level could lead to a drop towards $55,000.
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Looking at a broader perspective, Martinez also highlights Worrying trends in Bitcoin’s market cap to realized value (MVRV) momentum. Since falling below the $66,750 mark in June, Bitcoin has been in a downtrend, and this negative trend has yet to show signs of reversing.
To invalidate this indicator, BTC needs to break through this level and reclaim it as support, which could signal the continuation of expected growth. meeting towards the all-time high of $73,700 reached in March of this year.
At the time of writing, the largest cryptocurrency on the market is trading at $58,440, recording losses of more than 3% in 24 hours.
Featured image of DALL-E, chart from TradingView.com
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