Increase in odds for Federal Reserve rate cut leads to bullish prediction for Bitcoin price reaching $137,000
Bitcoin, the world's largest cryptocurrency, experienced a significant surge last week, with transaction fees rising by 10%. This increase could be attributed to the increased activity on the network.
The digital asset briefly touched an all-time high of $122,190 after the release of the US Consumer Price Index (CPI) report, which held steady at 2.7% year-over-year.
Technical analyst Titan of Crypto projects a bullish scenario for Bitcoin, with a target of $137,000. This optimistic outlook is based on the recent breakout of a bullish flag pattern on the daily chart. If Bitcoin achieves a daily close above the psychologically important $120,000 mark, it could potentially trigger the next phase of Bitcoin's rally, with the primary technical target being $130,000.
However, a more substantial pullback could test levels as low as $95,000. The current support zone for Bitcoin is between $117,650-$115,650. At press time, BTC traded at $118,724, maintaining gains from its recent rebound.
The Relative Strength Index (RSI) for Bitcoin hovered near 58, suggesting momentum remains in neutral territory with room for additional upside.
Meanwhile, institutional adoption of Bitcoin continues to grow. Nakamoto CEO David Bailey announced plans to purchase $1 billion worth of Bitcoin, and MicroStrategy added $18 million worth of BTC to its holdings, bringing its total to 628,946 BTC.
The current probability for a September Federal Reserve interest rate cut, based on recent reports, shows some variation. As of early August, the probability was high, with a 99.9% chance of a quarter-point cut noted in some reports. However, by mid-August, the probability had adjusted slightly, with estimates ranging from 71.5% to around 84.6% for a 25 basis point cut. The CME FedWatch tool continues to be a key indicator, reflecting market expectations ahead of the September meeting.
The fluctuation in probabilities can be attributed to factors like the July CPI report, which showed steady inflation at 2.7%, and changes in unemployment data. As of now, the probability of a September Federal Reserve interest rate cut increased to 93.9%, according to CME FedWatch data.
Approximately 94% of Bitcoin's supply is currently in profit, indicating widespread optimism among Bitcoin holders. However, it's essential to remember that the cryptocurrency market remains volatile, and investors should exercise caution when making investment decisions.
In conclusion, Bitcoin's price action is influenced by a combination of technical factors, market sentiment, and fundamental events such as the US CPI report and potential Federal Reserve interest rate cuts. As the market continues to evolve, it's crucial for investors to stay informed and make decisions based on thorough research and analysis.
Read also:
- A Business Model Explained: Its Purpose and Benefits for Your Venture
- Deep-rooted reinforcement of Walkerhughes' acquisitions through strategic appointment of Alison Heitzman
- Unchecked Management of HP Dams Leads to Environmental Disaster: RTI Reveals
- Impact of Trump's Enforced Russia Sanctions Could Compel Putin's Decision-Making
