The price of Bitcoin is about to break out and enter a new, possibly significant phase. A new CME gap has emerged after a major drop in the price of BTC. The expected interest rate cut by the Federal Reserve may cause a ripple effect in the market. In a video on YouTube on Monday, Crypto Rover suggests that the next 48 hours would be crucial for the BTC price.
CME Gap Insights
According to analyst findings, the recent Bitcoin price correction has created a CME gap. Traditionally, 90% of these gaps are closed within the first two days. This gap suggests a 2-3% potential upside, leading to speculation that Bitcoin is likely to rise soon. Although Bitcoin has been declining in the past few days, it is still trading in an uptrend, as evident from higher lows and higher highs.
The cut in interest rates by the Federal Reserve by 50 basis points, which is expected later this year, may greatly affect the Bitcoin market. This is similar to other instances that have been realized whereby Bitcoin would go on a bull run after a rate cut. Given that this cut has a 61% probability, the markets are waiting to see if history will repeat itself and create another buying opportunity.
Bitcoin Sentiment Soars as BlackRock Calls It a Global HedgeTether’s Market Influence
Rover also notes that Tether recently printed $1 billion worth of tokens, which may show that demand is rising beyond the crypto industry. This is expected to create more buying pressure on Bitcoin and will be another market strength signal. The analyst considers this a positive sign amidst the prevailing market volatility, which indicates strong demand for Bitcoin.
Bitcoin Price Analysis
According to analysts, Bitcoin ranges inside a symmetrical triangle on the 12-hour chart. The key support levels are at $55,000 and $53,000, which were strong earlier. Nevertheless, Bitcoin has a bearish pattern with a downward-sloping resistance line, and if it breaks through it, it could propel a new uptrend. As of press time, BTC sits at the price of $58,264, showing a 3.24% decline over the last 24 hours.
The analyst remains bullish, noting that any pullback to the support range would be a good entry point. The next 48 hours are crucial as the market prepares for the Federal Reserve’s decision. Investors should pay close attention to these events. With market forces shifting, we are on the brink of a possible significant shift in the crypto space.
