The cryptocurrency market has been witnessing a significant surge in recent days, with Bitcoin (BTC) seeing a sharp increase in value. The latest development that could propel the price of Bitcoin even higher is the rising odds of a Fed rate cut, which have increased to 60% according to recent data.
Why Rate Cuts Could be a Bullish Catalyst for Bitcoin
A rate cut by the Federal Reserve would likely reduce yields on traditional assets like bonds, causing investors to flock to riskier assets like Bitcoin and other cryptocurrencies. The anticipation of a rate cut has already been reflected in the market, with Bitcoin prices surging in recent days.
The last time the Fed cut interest rates, Bitcoin rallied more than 20% ahead of the cut, indicating that the expectations of a rate cut can have a significant impact on the price of the digital currency.
Key Levels to Watch in the Coming Days
Currently, the price of Bitcoin is hovering around the $95,000 mark, with many analysts believing that a sustained push through this level could open the door for a swift move higher.
The 111-day simple moving average (SMA) at $91,300 and the short-term holder (STH) cost basis at $93,200 are key levels that must be broken and held for further price appreciation. If the price of Bitcoin fails to hold above these levels, it could slide back into bearish territory and potentially revisit the $84,000 range.
On the other hand, a breakout above $95,000 could see Bitcoin move out of consolidation and potentially towards the $100,000 psychological level. Many analysts believe that a decisive break above $95,000 could be a significant catalyst for the price of Bitcoin, leading to a rapid move higher.
Why Bitcoin is Ready to ‘Blast’ Higher
Well-known analyst AlphaBTC believes that Bitcoin is ready to break out and surge to new highs. He points out that the price of Bitcoin has been consolidating within a tight range over the past few days, and a breakout above $95,000 could see the price of Bitcoin soar.
AlphaBTC also notes that the daily RSI (Relative Strength Index) is showing a strong buying signal, which could indicate that the price of Bitcoin is ready to make a significant move higher.
What’s Next for Bitcoin’s Price?
In the coming days, the market will be closely watching the price of Bitcoin as it navigates the critical level of $95,000. A sustained push through this level could open the door for a swift move higher, while a rejection at this level could see the price of Bitcoin slide back into bearish territory.
Ultimately, the price of Bitcoin will depend on a variety of factors, including the economic data coming out of the US and the expectations of a Federal Reserve rate cut.
The Importance of Economic Data
The May 2 jobs report, which will reveal how many jobs were added to the US economy in April, will be a significant data point to watch in the coming days. If the data comes in stronger than expected, it could boost the price of Bitcoin and other risk-on assets.
On the other hand, weaker-than-expected data could lead to a decline in the price of Bitcoin and other cryptocurrencies.
