Bitcoin’s price correction that commenced on September 14 may soon come to a halt, sparking a potential reversal rally. The imminent US Fed rate cut on September 18 plays a significant role in this short-term shift. Furthermore, Tether, the stablecoin issuer, recently generated $1 billion USDT, causing ripples in the market. The surge in Tether’s supply on exchanges has caught the attention of traders, with a billion USDT introduced in the last 24 hours alone.
Market watchers speculate whether Bitcoin will surge prior to the Fed rate cut. Following a 12% surge in Bitcoin’s price from September 7, there was a local peak on September 14, leading to a subsequent 3% correction. The Fed’s impending rate cut announcement on September 18 remains a crucial factor influencing BTC’s price movement.
The crypto community is divided into two camps, with different interpretations of the potential outcomes following the rate cut. Either a “risk-on scenario,” where financial markets including cryptocurrencies rally, or a “risk-off outlook,” prompting investors to switch to safer assets due to increased uncertainty. As Bitcoin hovers around the $58,800 mark, market participants are bracing for possible volatility surrounding the rate cut decision.
Technical analysis reveals that Bitcoin has recently respected key trend lines and moving averages, resulting in a recovery rally. If BTC manages to maintain support levels and break through key resistance barriers, there is a possibility of a significant price surge. Conversely, a breach of crucial support levels could lead to a considerable downturn in Bitcoin’s value.
With the intricate interplay of market dynamics and the impending Fed rate cut, the crypto landscape remains unpredictable, awaiting the next moves in the ever-evolving financial realm.