Bitcoin and cryptocurrency markets started the day with a decline due to the possibility of interest rate cuts after Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper urged the FED to reduce interest rates before its upcoming decision. While, Bitcoin saw a drop of 4% in the last 24 hours to $66,700, and Ethereum fell to $3,520.
What To Expect This Week?
According to well-known crypto analyst Michaël van de Poppe, this week is crucial as the markets prepare to receive new CPI data and the latest interest rate decisions from the FOMC on June 12.
Analysts say concerns about the FED keeping high interest rates have increased selling pressure. Initially, two interest rate cuts were expected by the end of 2024, but now even a September cut seems unlikely. Uncertainties in the USA and poor economic data have reduced interest in risky assets like Bitcoin, hurting its price.
Historically, Bitcoin and other cryptocurrencies tend to correct themselves before such events and then rebound afterward. This pattern suggests that traders and investors are cautious, waiting for the economic data before making significant moves.
Next BTC Buying Opportunity
Recently, Bitcoin’s price has fallen after failing to break through the $71,000 mark. Van de Poppe identified several key price levels and areas of interest for investors. He noted that Bitcoin is expected to test the support range between $64,000 and $65,000.
According to his analysis, this range is crucial as it could provide a strong base for Bitcoin’s price to stabilize before trying to rise again. If the price falls below this support, Poppe highlights a significant demand zone between $54,000 and $56,000.
This potential turnaround is expected due to the upcoming FOMC meeting and the release of the new CPI data.
