Technical Analysis:
BITCOIN is in good bullish trend for now and we might see price breaking towards 66000 soon. We might see price retracing a bit towards 62000 zone for now and then continue to the upside. If we get a MSS below we can plan for longs in BTC.
Fundamentals:
Jay Powell, Chair of the Federal Reserve, said at the annual Jackson Hole gathering of central bankers that interest rates are primed for a cut. Changes in borrowing costs affect the capital flows in the crypto space, which is full of higher-risk assets. Market participants are more likely to grab a loan that’s cheaper to pay off than pile debts that carry a higher interest rate, which will be more costly to repay.
By the looks of it, broader adoption and continuous liquidity for the crypto market hinge on the scale of correlation it has to traditional assets. The more Wall Street and regular traders warm up to it through spot Bitcoin ETFs and other entries to the space, the better its chances for price appreciation and consistent growth. And if that is the case, then it’s only natural for crypto to be impacted by economic news, such as interest rate decisions, inflation and other macro data.
Disclaimer: Trading carries risk. Practice effective risk management and consider your risk tolerance before trading.
