As Bitcoin (BTC) faces a challenging market environment, it has struggled to regain momentum, hovering around the $53,000 and $60,000 levels for six consecutive weeks.
After losing the crucial $70,000 threshold on August 1, the largest cryptocurrency remains at risk of further declines, especially with the upcoming Federal Reserve (Fed) meeting on September 18, where a 0.50% rate cut could significantly impact its price.
The future of BTC is in balance
Recent Insights from Crypto Analyst Doctor Profit suggest that the market is narrowly divided, with an even 50/50 chance of a 0.25% or 0.50% rate cut. However, Doctor Profit is confident that the Fed will opt for a larger cut, citing the need for decisive action in the current economic climate. He notes: “A 0.25% cut is simply too little for where we are right now.”
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The analyst argues that failure to implement a 0.50% cut could lead to market turmoil reminiscent of “Bloody Monday” experienced On August 5, Bitcoin plummeted to lows of $48,900, resulting in a price drop of nearly 25%.
According to Doctor Profit, this could include acknowledging the Fed’s past strategies and an optimistic outlook for the economy, potentially paving the way for the future. rate cuts.
Given these potential scenarios, the analyst warns of the potential for market manipulation and “scams” that could mislead investors on both sides of the trade. Furthermore, geopolitical tensions, especially with regard to the Israel-Lebanon situation, add another layer of complexity and could exacerbate market fears and volatility.
Despite the short-term risks, Doctor Profit remains optimistic about Bitcoin’s long-term prospects, especially through the end of Q3 2025.
The analyst believes that any short term panic will eventually be countered by a return to an expansionary monetary policy, as seen in the recent inflow of USDT and other injections of money into the market. He highlights that once rate cuts are implemented, the Fed’s money printing will likely resume, providing a foundation for the recovery.
Bitcoin Price Analysis
Taking a deeper look at current price action, analyst Ali Martinez recently noted that Bitcoin is trading inside a parallel channel on the hourly chart.
Martinez states that Bitcoin could return to mid-range or upper levels if the lower border holds, targeting $60,200 or $62,000. However, Martinez warns that a break below the $58,100 support level could lead to a drop to $55,000.
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Zooming out for a broader perspective, Martinez also highlights on the current trends in Bitcoin’s market value to realized value (MVRV). Since breaking above the $66,750 mark in June, Bitcoin has been in a downtrend, and this negative trend has yet to show any signs of reversing.
To invalidate this indicator, BTC needs to break above this level and reclaim it as support, which could signal the continuation of an expected race towards the all-time high of $73,700 reached in March this year.
At the time of writing, the market’s largest cryptocurrency is trading at $58,440, recording losses of more than 3% in the last 24 hours.
Featured image of DALL-E, chart from TradingView.com
