As the US federal rate cut fast approaches, analysts at QCP Capital, a global digital asset trading and market making firm, have now shared their forecast on how this development could impact 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.
Notably, these economic indicators are expected to provide greater clarity on whether the Federal Reserve will initiate a rate-cutting cycle at its next Federal Open Market Committee (FOMC) meeting on September 18.
Economic Data to Influence Bitcoin Market Movements
QCP analysts revealed that anticipation of these events has led to cautious positioning among market participants, thus signaling potential “moderate volatility” for Bitcoin in the near term.
Scheduled for release on September 6, the U.S. nonfarm payrolls report is one of the key economic metrics that could very well influence the Federal Reserve Interest Rate Decisions.
The previous report earlier this month showed an increase in US unemployment rate from 4.1% to 4.3%which triggered a notable drop in the global financial market. Notably, this increase raised concerns that the Fed might be falling behind in its efforts to adjust rates accordingly.
In addition to the payroll data, today’s upcoming US GDP report could also affect Bitcoin’s price performance, although analysts at QCP Capital believe its impact on the cryptocurrency market could be limited. The analysts noted:
Tonight’s US GDP report is unlikely to be a non-event for crypto, especially if it reinforces the ongoing narrative of a slowing US economy.
Bitcoin Market Performance and Price Action Outlook
Amid these upcoming economic developments, Bitcoin has returned to a bearish trend after a brief period recovering to over $61,000 yesterday.
Bitcoin is currently trading at $58,285, marking a 4.3% drop in the past 24 hours. This drop has prompted several market analysts to offer their updated insights in the asset’s short-term prospects.
For example, Elja Boom, a well-known crypto analyst at X, commented on the ongoing consolidation, stating:
There are no signs of a breakout yet. Consolidation could happen until October before a breakout. I am confident of a breakout in Q4, but before that there will be more instability.
Meanwhile, another analyst, known as the ‘Titan of Crypto’ on X, offered a short-term update highlighting a key resistance level. The analyst highlighted the $59,600 price mark as an important level for Bitcoin.
According to the analyst, if Bitcoin reclaims these price levels and breaks through the Cloud Turnaround, “the Clouds would move from resistance to support”And that could result in a major recovery for Bitcoin.
#Bitcoin Short term update
If #BTC If it reclaimed $59,600 and broke the cloud turnaround, the clouds would move from resistance to support.
This can trigger an upward movement. pic.twitter.com/1XdS3zeBCZ
– Crypto Titan (@Washigorira) August 30, 2024
Featured image created with DALL-E, chart from TradingView