- Bitcoin ($BTC) investors are cautious as the token has a hard time breaking above its $62K resistance level.
- While some analysts predict a bearish reversal if $BTC fails to hit $62K, others suggest a temporary correction rather than a long-term downward trend.
- The Federal Reserve’s (FED) upcoming expansionary policies could be a positive catalyst for $BTC’s price action.
$BTC has been hovering below $62K since August 9, struggling to break above the new resistance level. The drop from its recent height of $70K was caused by the stock market turmoil that triggered FUD among investors.
Although $BTC rebounded from $49K, its former all-time high of $73K appears to be out of reach.
Analysts at Kraken share a pessimistic outlook: if $BTC fails to hit $62K soon enough, it could drop below $50K.
$BTC’s Next Move – Bullish or Bearish?
Kraken notes that $BTC needs to hit $62K and stay there to avoid a retest of $49K. However, some analysts argue that $BTC’s price action shows a corrective pattern, not a bullish trend.
Moreover, $BTC’s current price of $61K is near its 200-day exponential moving average (EMA) of $59K, which gives more weight to the recent data. This suggests that the market may be experiencing indecision or a potential shift in trend.
On the other hand, the US FED’s upcoming expansionary policies are likely to favor $BTC bulls.
The Federal Open Market Committee (FOMC) will announce an interest rate cut at the next meeting on September 18. Economists expect a substantial 0.5% cut, which typically favors high-risk markets like crypto.
Markus Theilen at 10x Research also believes that $BTC is poised for a short squeeze, which typically increases the asset’s price as investors who shorted it strive to cover their positions.
Similar to Kraken, an analyst and trader, Decode notes that $BTC must rebound to $63K by the month’s end to get back on the upward track.
While $BTC lost momentum and the September trend doesn’t look exciting, Decode is bullish for Q4.
Another X user expects $BTC to break its resistance level within the next seven days. Many anticipate $BTC to follow gold, saying, ‘It’s a matter of when, not if.’
The market’s indecision, as indicated by the proximity to the 200-day EMA, and the potential for a downward trend create a cautious outlook for the short term.
Yet, HODLers are bullish for the future.
References
- FOMC Meeting Calendar (FED)
- MMCrypto (X)
- Decode (X)
- Bitcoin (CoinMarketCap)
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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