Uncertainty continues to surround Bitcoin price trajectory as its momentum signals an element of fear uncertainty and doubt (FUD). The crypto bellwether rose by more than 4 percent on Friday but then embarked on a downward trajectory on Saturday through Monday, erasing the gains. However, BTCUSD returned to the upside on Tuesday, gaining 1.1 percent to trade at $58,861 at the time of writing.
Bitcoin price has been rejected multiple times at the $60k level in the last three weeks, establishing that mark as a key psychological barrier. Markets are currently focused on Wednesday’s interest rate decision by the Federal Reserve. The first rate cut in four years is expected to impact the crypto market substantially, with the CME FedWatch Tool reporting that 67 percent of traders expect 50 basis points cut.
The rising prospects of deep rate cut raise the prospect of further gains by Bitcoin price, going by the rally seen on Friday when US economic data came out. That momentum drove up Bitcoin ETF inflows to $436 million last week, compared to outflows amounting to $1.2 billion in the previous ten sessions.
The approval of Bitcoin ETFs earlier in the year has been a double-edged sword for the crypto asset. While it has helped streamline institutional investment, it has also exposed BTC to the shocks of the mainstream financial markets. Therefore, a deep cut by the Fed could help prop up Bitcoin price alongside traditional asset markets.
Bitcoin ETF Net Inflows. Source: Coinglass.com
Bitcoin price will likely head up if it keeps action above the 58,880 pivot mark. The upward momentum will likely encounter initial resistance at 59,323, but a move past that mark will clear the way to test 59,680.
Conversely, moving below 58,880 will shift control to the buyers, with initial support likely to be at 58,360. If they extend that control, the resulting momentum could breach that support and invalidate the upside narrative. Also, it could extend the decline to test 57,850.
This post was last modified on Sep 17, 2024, 12:11 BST 12:11