Bitcoin Price To ‘Chop’ Around This Range Until Q4, Analysts Say
August 25 2024 - 4:30AM
NEWSBTC
The Bitcoin price rally triggered by Federal Reserve chairman
Jerome Powell’s latest speech has been the major talking point in
the crypto community this weekend. Analysts at trading firm QCP
Capital are amongst the latest entities to weigh in on BTC’s return
to within the $61,000 and $70,000 consolidation range. How Interest
Rate Cuts Could Affect The Bitcoin Market In its latest report, QCP
Capital reacted to the Bitcoin price rallying on the back of the
Fed’s announcement of a potential cycle of lower interest rates.
Based on on-chain data, this price surge was primarily triggered by
spot Bitcoin demand rather than through futures or other
derivatives. According to QCP, the funding rates, which indicate
the cost of holding long positions in the futures market, remained
flat during the rally. The trading firm mentioned, however, that if
the Bitcoin price maintains support at $62,000, a rise in leveraged
long positions is expected, especially as the end of the summer
holidays approaches. Related Reading: Bitcoin Price Surges Above
$64,000 — Here’s The Resistance Level To Watch Furthermore, the QCP
report shows a significant increase in bullish calls in the options
market, particularly around the $62,500 – $63,000 strike prices,
just before Powell’s speech at Jackson Hole. The trading firm
added: Even on the backend, bulls continue to pile on to their long
bets in Dec and Mar (80k to 85k strikes). Powell confirmed that the
Fed will slash interest rates in the next month. QCP analysts
revealed that a 25 basis point (bp) cut could be potentially
bullish for the Bitcoin price, suggesting that the Federal Reserve
is taking a cautious approach towards the economy. Meanwhile, a
50bp cut could indicate the Fed “taking acute action to prevent the
economy from falling flat.” While selling pressure has waned and
steady capital has flowed into the spot exchange-traded funds
(ETFs) over the past two weeks, QCP analysts still believe that the
Bitcoin price will continue to consolidate within the $61,000 and
$70,000 until 2024 fourth quarter. “We maintain the view that the
US elections accompanied with bullish seasonality could be the
catalyst for all-time-highs,” the analysts said. Bitcoin Price At A
Glance As of this writing, the price of BTC stands at around
$64,250, reflecting a bare 0.5% increase in the past 24 hours.
According to data from CoinGecko, the premier cryptocurrency has
increased in value by more than 8% in the past week. Related
Reading: Solana Eyes Price Surge To $220: Breaking Through This
Resistance Is The Key Featured image from iStock, chart from
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