Originally published on: August 28, 2024
As Bitcoin’s summer slumber nears its end, all eyes are on a potential bullish breakout if the leading cryptocurrency can achieve a green monthly close in August. A decisive move above $64,300 is crucial for Bitcoin to mark a significant 7% rally from its current price of $59,960.
Positive Signals Amidst Challenges
While predicting the monthly candle close poses its challenges, recent price movements hint at a positive outlook for Bitcoin. Analysts at Bitfinex, speaking to Cointelegraph, see promising signs in the cryptocurrency’s recent price actions, suggesting a potential turnaround.
Overcoming Psychological Barriers
Bitcoin has been grappling with breaking past the psychological barrier at $60,000, reflected in its 12% decline on the monthly chart based on Cointelegraph data. The struggle to surpass key resistance levels, notably $63,900, may persist amid the traditional summer liquidity slump, as noted by Bitfinex analysts.
Navigating Uncertain Terrain
Historical data indicates a negative average return for Bitcoin in September, standing at -4.78% since 2013. In the midst of summer illiquidity, Bitcoin’s price has been oscillating within a range of $58,000 to $64,000, awaiting a catalyst for a decisive move.
Looking Ahead: Impacts of Interest Rates
Amid speculations of a potential interest rate cut by the US Federal Reserve, industry experts anticipate a shift in market dynamics that could propel Bitcoin into a parabolic trajectory. According to Kristian Haralampiev, structured products lead at Nexo, investors are eyeing the upcoming Fed meeting on Sept. 18 for clues on market direction.
Notable Market Indicators
The CME FedWatch tool indicates a significant 65.5% probability of a 25 basis-point rate cut, with a 34.5% chance of a 50 basis-point reduction. These developments could shape Bitcoin’s trajectory in the coming weeks, potentially unlocking new opportunities for investors.
In Conclusion
Bitcoin’s journey towards a green monthly close above $64.3K holds promise amid prevailing market uncertainties and anticipations of key market events. As the cryptocurrency market evolves, stakeholders remain vigilant for potential catalysts that could steer Bitcoin towards a sustainable upward trend.
