Highlights:
- Bitcoin is in a minor intra-day correction after rallying to a high of $60k earlier
- Overall momentum remains bullish as Bitcoin holds above crucial support
- The upcoming rates cut in the US this week could trigger a rally to $70k
Bitcoin (BTC) is experiencing a minor pullback today after a strong rally that saw the world’s largest cryptocurrency surge past the $60,000 mark over the weekend. At the time of writing, Bitcoin is down by 1.92%, trading at $58,951.10.
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While this dip may raise concerns for some traders, the broader technical picture suggests that Bitcoin remains in the early stages of a potential bull rally. If current momentum continues, BTC could be set for a significant price increase in the short term.
Recent Price Movements and Key Levels To Watch
Bitcoin price surge began in early September when it broke through the $55,719 resistance level, a critical threshold that had kept prices subdued for weeks. Since breaking above this resistance on September 9, Bitcoin has been moving higher, with occasional fluctuations, as is typical in volatile markets. The current price pullback is a minor correction rather than reversing the bullish trend.
The next significant price level for Bitcoin to test is $61,420, a critical resistance level that, if broken, could propel Bitcoin price toward new heights. A push above $61,420 could set the stage for a rally to $70,000, a psychologically important price point that would attract even more attention from traders.
However, should Bitcoin fail to break through the $61,420 resistance, a short-term correction could see it retest the $55,719 support level, which has now become a critical floor. Bitcoin could drop to $53,000 if this support breaks, though this scenario seems less likely considering the current market conditions.
Bitcoin Price May Surge with Anticipated Fed Rate Cut
One of the most significant catalysts for a potential rally is the Federal Reserve’s anticipated interest rate cut this week. The U.S. central bank’s decision is expected to lower borrowing costs and inject liquidity into the financial markets, which could trigger a rally across various asset classes, including cryptocurrencies.
⚠️WHAT’S YOUR PREDICTION FOR THIS WEEK’S FED FOMC MEETING? pic.twitter.com/phCKWt0Fh7
— Investing.com (@Investingcom) September 15, 2024
Historically, Bitcoin has benefited from periods of loose monetary policy as investors seek alternative assets to hedge against inflation and currency devaluation. This correlation has led many analysts to predict that a rate cut could be the spark Bitcoin needs to push toward $70,000 and beyond.
Institutional Investors Turning Bullish
In addition to favorable macroeconomic conditions, there is growing optimism among institutional investors about Bitcoin’s future price potential. In an interview with Fox Business on September 13, VanEck’s CEO made a bold prediction, stating that Bitcoin could eventually reach as high as $350,000. Such a forecast, coming from a leading figure in the financial industry, reflects the increasing acceptance of Bitcoin as a legitimate asset class among institutions.
🇺🇸 $90 billion VanEck CEO says #Bitcoin will hit $350,000 🚀 pic.twitter.com/yLdVemGSof
— Vivek⚡️ (@Vivek4real_) September 12, 2024
The endorsement from institutional players like VanEck is significant because institutional capital tends to have a much larger impact on the market than retail investments. As more institutional investors turn bullish on Bitcoin, it could trigger a wave of buying that propels the price upward. This institutional support and a potential interest rate cut could create a perfect storm for Bitcoin’s price to rally in the coming weeks.
Conclusion – Bullish Momentum Remains Strong
Despite today’s minor correction, Bitcoin remains in a strong position for a potential rally to $70,000 in the short term. The break above $55,719 earlier this month, combined with favorable macroeconomic conditions such as the anticipated Federal Reserve rate cut, supports the case for continued upside momentum. Institutional investors are also increasingly bullish, with high-profile predictions like VanEck’s $350,000 target fueling the fire.
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