Bitcoin price threatens more downside pressure ahead of tomorrow’s interest rate decision after losing the key $60,000 support.
Bitcoin (BTC) volatility could introduce more choppy price action ahead of the Federal Reserve’s (Fed) next interest rate decision on Sept. 18.
The incoming interest rate decision could introduce more price volatility for the world’s first cryptocurrency, depending on the monetary decision, according to Bitfinex analysts, who told Cointelegraph:
“Depending on whether the rate cut is 25 basis points or 50 basis points, market behavior could swing between bullish optimism and cautious de-risking in response to major macroeconomic adjustments. This expected volatility might be reflected in flows across ETFs and perpetual markets, which are likely to exhibit increased fluctuations.”
The prediction comes a day before the Fed is widely expected to deliver its first interest rate cut since the beginning of the COVID-19 pandemic.
More analysts are increasingly calling for a Bitcoin breakout in October, which could be catalyzed by the Fed’s interest rate cut.
Related: Bitcoin price struggles as bears overtake bulls in futures markets
$52,000 Bitcoin was the price bottom: Bitfinex analysts
Bitcoin recovered above the $60,000 psychological mark on Sept. 14, for the first time since Aug. 30, but lost the key support level on the same day.
However, Bitcoin’s recent price action suggests that the token bottomed at around $52,000, explained Bitfinex analysts:
“Our earlier view that Bitcoin’s dip to $52,756 on 6 September might represent a potential local bottom has been substantiated. Prices have subsequently increased by over 15 percent, supported by a significant uptick in Bitcoin ETF net inflows of $403.9 million over the past week.”
BTC/USD, 1-day chart. Source: Bitfinex
Bitfinex analysts have previously called for a Bitcoin correction into the low $50,000, which could represent a “critical point” for the market ahead of the next interest rate cut.
Related: Ethereum falls to new 42-month low vs. Bitcoin — Bottom or more pain ahead?
Markets expect a 50 basis point rate cut, but…
..
