Crypto Daily - With the Federal Reserve expected to announce a 50 basis points rate cut in their meeting on Wednesday, the price of Bitcoin (BTC) is likely to be very volatile. Will this be the signal for Bitcoin to start climbing higher?
Bigger Fed rate cut looking more likely
The chances of a 50 basis points rate hike, to be announced in the Federal Reserve FOMC meeting on Wednesday, have grown impressively over the past few days. Market expectations have swung dramatically, and now the market is pricing in a 69% chance of a bigger rate cut than Fed Powell forecast in his last meeting.
In addition, U.S. Democratic senators recently wrote a letter to the Federal Reserve Board of Governors, urging them to cut 75 bps in Wednesday’s FOMC meeting.
The U.S. unemployment rate has spiked since July - climbing from 3.5% to a “decade high” of 4.2%, while inflation is still falling. It is for these reasons that the Democratic senators are requesting such a large rate cut on Wednesday.
As is normally the case, there is likely to be a lot of volatility in the Bitcoin price going into, and during, the meeting. However, this is really just a lot of noise, and once the dust settles, especially if the cut is going to be a big one, the longer term direction for Bitcoin could be decided.
Short term correction bought up
Looking at the price of $BTC in the short term time frame, it can be seen that the price fell through the ascending trend line in the latest small correction. However, the price was bought up perfectly from the 0.382 fibonacci, as the small candle wicks down to this level testify.
The next job for Bitcoin bulls is to push the price up and above the local highs seen at the top left of the chart. Getting back above this $65,050 level would form a new higher high, and comprehensively break the local downward trend.
Bitcoin looks ready
When zooming right out, it really does look like Bitcoin is ready to move higher. Six months was a great period of time for the price to be able to absorb the huge run-up from the bottom. This run-up is now the flag pole for what is a huge bull flag, and if this breaks to the upside, hang on to your hats. $100,000, or even $150,000 could be the targets before the bull market ends later in 2025.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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