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At this moment in time, Bitcoin is trading at $60,997.46 which is showing an increase of only 0.37% over the last 24 hours and with a market cap of $1.2 billion. The last 24 hours has seen its trading volume drop by 26.98% reaching $25.5 billion.
The crypto market may see another bull run because of developments affecting US monetary policy in recent times. The Federal Reserve may cut interest rates by 25 basis points in September as indicated by minutes from the Federal Open Market Committee (FOMC) July meeting .
According to some members of FOMC, steps towards curbing inflation have been made and it’s hovering around 2% inflation. On top of this they also stated that holding off on rate cuts is a risk due to rising unemployment rates. Following these minutes there was a change in market sentiment with CNBC reporting traders now indicate zero doubt whatsoever on rates cut by Fed come September.
Everyone now awaits Jerome Powell who will address people during Kansas City Fed's Jackson Hole Economic Symposium on Friday as he is the chairman of Federal Reserve Bank. In previous years this event gave signals showing major shifts in policy and so many expect Powell to hint at a looser monetary regime after more than two and half years of tightening.
Technically, Bitcoin is showing that a bull run is aproaching. BTC is currently trading within a bullish flag with next major resistance and target being around $68K. Moving above this level could signal further upward moves.
On the daily chart, the MACD indicator made a bullish crossover as it shows a positive histogram while its signal line lies beneath the MACD line. Big movements often follow this particular technical setting.
It’s interesting to note how closely BTC price action has been showing a similar trend to that of gold lately, forming bullish flag patterns on both assets respectively. Consequently, it may be taken that Bitcoin will continue doing the same.
While looking at weekly charts from a tweet, we can notice another indication for bulls. There is a hammer candlestick which usually comes before massive spikes in Bitcoin prices. The hammer candlestick formed recently carries an even longer wick, making it highly likely for an even bigger rally to occur.
Bitcoin has just fallen below $56K recently before bouncing back as analyzed in our previous report. It is important to know that this kind of price action fits well into historical patterns and thus may set stage for next jump higher.
We all anxiously waiting for Jerome Powell's speech, with rumors circulating on the effect of a rate cut on digital assets. Since the adoption of more expansionary economic policies, Bitcoin and other alternative digital coins stand to greatly gain thereby enabling them to penetrate much deeper into the new bull cycle.
Monitor $68k resistance level closely as its breach would make room for new all-time highs in Bitcoin prices.
