With a US Federal Reserve rate cut fast approaching, analysts at QCP Capital, a global digital asset trading firm and market maker, have now shared their predictions. prediction About how this development will affect the price of Bitcoin.
According to analysts, the upcoming US non-farm payrolls report and GDP data on Friday will play a crucial role in shaping Bitcoin market sentiment.
It is worth noting that these economic indicators are expected to provide further clarity on whether the Federal Reserve will begin its interest rate cutting cycle at its next Federal Open Market Committee meeting on September 18.
Economic data will affect Bitcoin market movements
QCP analysts revealed that anticipation of these events has led to cautious stances among market participants, thus indicating potential “subdued volatility” for Bitcoin in the near term.
The US non-farm payrolls report is due out on September 6, a key economic gauge that could have a major impact on the Federal Reserve’s interest rate decisions.
The previous report earlier this month showed an increase in US unemployment rate from 4.1% to 4.3%This led to a significant decline in the global financial market. It is worth noting that this increase raised concerns that the Federal Reserve may lag behind in its efforts to adjust interest rates accordingly.
In addition to the payrolls data, the upcoming US GDP report today could also impact Bitcoin price performance, although QCP Capital analysts believe its impact on the cryptocurrency market could be limited. The analysts noted:
Tonight’s US GDP report is likely to be a non-event for cryptocurrencies, especially if it reinforces the ongoing narrative of a slowing US economy.
Bitcoin Market Performance and Price Action Forecast
In light of these upcoming economic developments, Bitcoin has returned to a downtrend after briefly recovering to over $61,000 yesterday.
Bitcoin is currently trading at $58,285, which represents a 4.3% decline in the past 24 hours. This decline has prompted several market analysts to offer their updated views on the asset’s short-term prospects.
For example, Elja Boom, a well-known crypto analyst on X, commented on the ongoing unification process, statement:
There are no signs of a breakout yet. Price consolidation may occur until October before a breakout occurs. I am confident of a breakout in Q4, but before that, there will be more volatility.
Meanwhile, another analyst, known as the “Titan of Crypto” on X, available Short-term update highlights key resistance level. The analyst highlighted the $59,600 price level as a key level for Bitcoin.
According to the analyst, if Bitcoin regains these price levels and breaks through the cloud warp, “the clouds will flip from resistance to support,” and this could lead to a significant rise in the price of Bitcoin.
#Bitcoin Short term update
if #Bitcoin It reclaims $59,600 and breaks the cloud wrap, as the cloud flips from resistance to support.
This could lead to an upward move.
pic.twitter.com/1XdS3zeBCZ
– Crypto Giant (@Washigorira) August 30, 2024
Featured image created using DALL-E, chart from TradingView
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