As Bitcoin and Ethereum continue to repeat historical patterns, traders and investors should closely monitor upcoming interest rate decisions and their potential impact on the market. Whether it’s a 25 or 50 basis point cut, the direction of interest rates will play a crucial role in shaping market sentiment in the weeks to come.
Recently, new inflation data was released, revealing a U.S. Consumer Price Index (CPI) inflation rate of 2.9% year-over-year. This figure was slightly below the revised expectation of 3%, but close enough to market predictions. As a result, the market remained relatively stable, with no major price fluctuations observed.
Bitcoin’s Technical Analysis:
According to analyst Josh of Crypto World, Bitcoin is currently experiencing a bearish trend on the 4-day timeframe, with lower highs and lower lows forming on the chart. The Super Trend indicator also signals a bearish outlook. However, Bitcoin is still within a descending broadening wedge pattern on the 2-day chart. A breakout above the resistance level of $68,500 could set up a bullish price target, but for now, the trend remains bearish.
Short-Term Support and Resistance Levels
Bitcoin faces resistance at several levels, including $60,000-$61,000, $63,000, and $67,000-$68,300. On the support side, key levels include $57,500, $56,000-$57,000, and a support zone between $51,000-$53,000.
Potential Short-Term Moves
Interestingly, Bitcoin’s current price action resembles the patterns seen during the March 2020 crash. If history repeats itself, we might see slight bullish relief in the next few days, followed by some choppy sideways action.
Liquidity levels are also crucial in this context. There’s considerable liquidity around the $62,000 mark, specifically between $61,800 and $62,200. On the downside, liquidity is concentrated around $57,500 and $56,500. These liquidity zones could act as magnets for price action, influencing short-term movements.
