Bullish view
Bearish view
Bitcoin price held steady above $60,000 as traders reacted to the first interest rate cut by the Federal Reserve. The BTC/USD pair was trading at 60,200, a few points below this week’s high of 61,346.Its price action mirrored that of American equities, which rose after the Fed cut and then erased those gains. The Dow Jones, S&P 500, and Nasdaq 100 indices dropped by over 0.25%.These declines happened because the Fed rate cut was already priced in by market participants, which explains why they have been rising. In Bitcoin’s case, it jumped from this month’s low of $52,600 to over $61,000 before the Fed decision.Still, some analysts believe that the Fed rate cuts will be welcomed by the market, leading to more gains in the long term. Besides, the Fed hinted that it will deliver more rate cuts in the final two meetings of the year.Fed rate cuts will have a positive impact on Bitcoin because of the vast sums of money invested in money market funds. In the past few years, many investors have allocated over $6.1 trillion in these funds to take advantage of higher returns.Now, with these returns expected to retreat, there are signs that investors will rotate from bonds to riskier assets like Bitcoin and stocks.The BTC/USD pair also rose as investors reacted to a white paper by Blackrock, the biggest asset manager in the world. In it, the three authors noted that Bitcoin was a differentiated financial asset that had stood the test of time. It was also highly uncorrelated with other financial assets like gold and stocks. BTC/USD technical analysisBitcoin has made a slow recovery in the past few weeks as it jumped from a low of $52,598 to over $60,000. Its lowest point this month was a notable level since it coincided with the lower side of the descending channel shown in blue.The BTC/USD pair moved slightly above the 50-day moving average and is forming a bullish pennant chart pattern. It is also in the middle of the blue descending channel.Therefore, the outlook for the pair is moderately bullish, with the next point to watch being at 64,000. This view will be confirmed if it rises above this week’s high of 61,345.More By This Author:AUD/USD Forex Signal: Greenback Pressured Ahead Of US Retail Sales DataBTC/USD Forex Signal: Bitcoin Braces for More Upside Ahead Of FedBTC/USD Forex Signal: Needs to Flip 200 EMA To Avoid Death Cross
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