Bitcoin saw a significant decline following its record-setting high in mid-August, falling below $110,000. While experts anticipate a potential interest rate cut from the Federal Reserve this September to stimulate growth, some analysts remain skeptical about Bitcoin’s price trajectory even with such a move.
Vincent Liu, Chief Investment Officer at Chronos Research, stated that a Fed rate cut might not be enough to propel Bitcoin past the $120,000 mark. He highlighted that this decision could signal an economic slowdown and added investor concerns regarding inflation and market confidence as factors pushing down demand for risky assets.
Liu predicts that without substantial increases in ETF inflows or liquidity, the $120,000 level will act as a formidable resistance point for Bitcoin. “Unless there is a significant increase in ETF inflows or an improvement in liquidity, Bitcoin may struggle to exceed $120,000 easily.”
BTC Markets crypto analyst Rachel Lucas also provided her perspective on the matter. She expressed that weak employment data could bolster the Fed’s dovish approach, which is generally favorable for risk assets but market expectations have already factored in this potential change. Lucas further stated that profit-taking by institutional investors and a lack of substantial inflows into spot Bitcoin ETFs are hindering Bitcoin’s positive momentum, leading to consolidation within a narrow price range.
What Are the Critical Resistance Levels for Bitcoin?
Lucas recently identified the current critical support level for Bitcoin as $110,000. “As long as Bitcoin maintains the critical $110,000 level, it remains a market maker. The first resistance point for BTC is at $113,400, followed by other resistance levels at $115,400 and $117,100. A breach above these levels could signal that the market has overcome recent selling pressure and is prepared to revisit previous highs.
*This information should not be construed as investment advice.* Continue reading for more insights on Bitcoin’s price outlook.