Bitcoin has been consolidating for most of the week, range bound between $10.2k and $9.6k. The monthly trend is still down but some industry experts foresee renewed action this weekend as fundamentals in the US could play a part.
Bitcoin Back Over Five Figures
BTC has made a few gains to keep it back about five figures, but only just. From an intraday low of around $9,700, BTC spiked in another ‘Bart like’ pattern back up to reach $10,230 where the 200 hour moving average sits. Tradingview charts show a slight retreat again to its current level trading at 00.
BTC price 1 hour chart – Tradingview.com
At the moment things are just bubbling at the surface for bitcoin and there has been no major momentum since things started to slide from the 2019 peak.
That could all be about to change though as an expected interest rate cut in the US next week could act as another catalyst. Fundstrat’s Tom Lee is expecting a weekend bull run in anticipation of this event which would lead to a weaker greenback.
Weekend is starting in US, and past few weekends led to weakness in #bitcoin
– Fed is expected to cut interest rates next week.
– Lower rates = weaker USD = Upside for Bitcoin $BTC
– So expect Bitcoin to break the pattern this weekend and actually rise this weekend.
Rocket Fuel For BTC
The negative sentiment in America has been echoed elsewhere as GDP falls in the second quarter, which is an indication of a decelerating economy. Founder and partner at Morgan Creek Digital Assets, Anthony Pompliano, has pointed out that this is ‘rocket fuel’ for bitcoin.
US GDP last quarter: 3.1%
US GDP this quarter: 2.1%
Economy s l o w i n g down only means one thing — cutting rates and printing money!
They don’t realize that they’re giving Bitcoin the rocket fuel it was built to consume.
Other crypto analysts such as popular trader, Josh Rager, has remained neutral to bearish as BTC fails to post higher highs.
If you wanted to see a potential scenario for a lower-high & lower-low it would likely top somewhere near the weekly resistance. I’m neutral now and will have bear bias w/ break below $9690 or bullish w/ break above $10,586 & preferably $10,854
Until bitcoin breaks higher the slow slide back will continue, and at the moment it is struggling to remain in five figures this Saturday morning.
Will a FED interest rate cut boost bitcoin? Add your thoughts below.
Images via Shutterstock, Bitcoin charts by Tradingview
The post Tom Lee Expecting Bitcoin Bull Run as USD Weakens appeared first on Bitcoinist.com.
Post written by our friend Martin Young
and Syndicated from Bitcoinist
Syndicated from Bitcoinist