The focus of investors is currently on the potential Federal Reserve interest rate cut and its potential impact on major assets like Bitcoin (BTC) as outlined on finbold.com. Bitcoin’s recent dip below $60,000 was driven by economic health concerns, with rate cuts seen as a likely game-changing move, especially amidst fears of a looming recession. Cryptocurrency trading expert, Trading Shot, highlighted possible scenarios for Bitcoin based on the Global Liquidity Index (GLI) and its correlation with the digital asset’s price trajectory. The GLI projection tracks major central banks, including the Federal Reserve, European Central Bank, People’s Bank of China, Bank of Japan, and Bank of England. The analysis suggests that when central banks reduce interest rates, it injects more money into the economy, leading to increased liquidity and potentially boosting the value of riskier assets like cryptocurrencies.
The past analysis shows that significant breakouts in the GLI have historically preceded Bitcoin rallies, with liquidity drops sometimes creating resistance zones that need to be surpassed for Bitcoin to enter bullish phases. Chart patterns suggest a wedge formation in the GLI, with a breakout above potentially triggering a parabolic rally for Bitcoin. Key price levels to watch include $68,000 as an initial target and a potential long-term target of $350,000 with sustained global liquidity increase and favorable market conditions.
Bitcoin’s price is currently trading at $56,662, correcting slightly by 0.4% in the last 24 hours, with a weekly increase of almost 1%. If Bitcoin is to embark on a parabolic rally post-rate cuts, it must overcome current resistance levels, notably the critical $60,000 threshold. It’s important to note that this information is not investment advice, and investing always carries risks (as stated on finbold.com).