Bitcoin weekly: Fed cuts, BTC shrugs
Bitcoin closed the week at $115.2k, ending the week completely flat after meeting resistance around $117k. The breakout from early July is still in play, with a price target of $142k. The drop in bitcoin dominance has leveled off, but there are no signs of the trend reversing yet: altseason is still in play.
Also watch the accompanying chart analysis on YouTube.
And so September 17 finally came. The day of the long awaited rate cuts from the US Federal Reserve. All eyes were on the announcement from the Fed, and on chairman Powell’s subsequent press conference.
As expected, the Fed decided to cut 25 basis points, bringing the target rate down from 4.25-4.50% to 4.0-4.25%. On the press conference, Powell explained how in their view the risk factors have balanced over the past 6 months. From inflation being the overwhelming risk, to a weakening jobs market and higher unemployment now also becoming a concern. In the Fed’s view, this warrants a rate cut, and also most likely more cuts going forward, but as always the data will lead the way.
The US stock markets overall reacted positively to the news, closing the week at all time highs. The big indices look very strong, with no signs of a top being in.
On the crypto side, bitcoin has been lagging a behind, still working on breaking through resistance around 117k. But big picture the chart still looks good, and it’s likely only a matter of time before it breaks through, and moves on to new all time highs, possibly some time in October. The price target on the weekly chart remains at 142k.
As of writing this Monday morning, bitcoin is dipping down to $112k, on big liquidations across all the entire crypto market. As far as I can tell right now, this is leverage being flushed out. It’s only Monday so far, and a lot can happen until the week ends on Sunday, so let’s wait and see.
Looking to the bitcoin dominance chart, the drop has leveled off over the past couple of weeks. But there are still no signs of a bottom being in. So for now, altseason is still on.
That’s it for this week. I’ll be back again next Monday with a new update. Thanks for reading!
