Coinspeaker
Bitcoin (BTC) Price Retraces to $58K Ahead of Anticipated Federal Reserve Interest Rate Cut on Wednesday
Bitcoin BTC $58 753 24h volatility: -2.0% Market cap: $1.16 T Vol. 24h: $27.18 B price dropped over 2 percent in the past 24 hours to trade at about $58,766 on Monday during the mid-London session. However, the flagship coin pumped over 7 percent last week, signaling a potential rebound ahead. With less than two weeks to the much anticipated fourth quarter, Bitcoin price is undeniably preparing to enter its parabolic phase.
Furthermore, Bitcoin dominance has continued to rise in the recent past and reached its multi-year high of about 58 percent earlier today. According to popular crypto analyst Benjamin Cowen, Bitcoin dominance will continue to rally towards 60 percent, before retracing in 2025 to pave the way for the much-anticipated altseason.
Midterm Targets for Bitcoin Price
From a technical standpoint, Bitcoin price has significantly reduced its falling trend that began earlier this year. Having rebounded from the weekly support level above $54K, Bitcoin price is now aiming to retest its all-time high in the near term.
According to a popular crypto analyst Ali Martinez, Bitcoin price in the 1-hour time frame has been forming a rising channel. As a result, the crypto analyst expects Bitcoin price to rally toward $62K if the buyers defend the support level around $58K. On the other hand, the crypto analyst highlighted that a drop toward $55K for Bitcoin will be inevitable if the $58K support level fails to hold.
On the hourly chart, #Bitcoin is moving within a parallel channel. If the lower boundary holds, $BTC could rebound to the mid or upper levels at $60,200 or $62,000. However, a break below the $58,100 support may lead to a drop towards $55,000. pic.twitter.com/5JbnrGRjYE
— Ali (@ali_charts) September 16, 2024
In the weekly time frame, Bitcoin price rebounded from the 50 Moving Average (MA) but failed to reclaim the 50 percent level on the Relative Strength Index (RSI). As a result, the Bitcoin close for the next few days will heavily impact the monthly close.
Mixed Reactions from Whales
Despite the fear of further crypto selloffs gradually diminishing in the last few days, on-chain data shows a mixed reaction from whale investors. For instance, a whale sold off 500 Bitcoins earlier today, worth over $30 million, and still holds nearly 300 BTCs.
A whale sold 500 $BTC($30.07M) 12 hours ago before the $BTC price dropped.
This whale has made 3 swing trades on $BTC, but only made money the first time, the next two trades were losses.
He still holds 259.6 $BTC($15.15M), with a total loss of more than $6M!
Address:… pic.twitter.com/w4Rkqbvg5g
— Lookonchain (@lookonchain) September 16, 2024
Meanwhile, the US spot Bitcoin ETFs registered a net cash inflow of over $403 million last week. Led by Fidelity’s FBT, the US spot Bitcoin ETFs are expected to continue accumulating more coins as the country prepares to undertake its 2024 general elections.
Economic Outlook
As Gold price rallied to its all-time high (ATH) earlier today, Bitcoin price is expected to follow the same path in the near term. The bullish sentiment is backed by most traders who are expecting the Federal Reserve to cut its benchmark interest rate on Wednesday.
Moreover, the US inflation has significantly declined to below 3 percent from over 7 percent in the past few years.
Additionally, the European Central Bank and Bank of Canada have all initiated several interest-rate cuts this year to stimulate economic activity in their respective regions.
