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Bitcoin Price Prediction as BTC Drops 3% – Bigger Sell-Off Incoming?

Bitcoin (BTC) has surged to approximately $67,900, continuing its upward trajectory amidst mixed economic indicators and expectations of a Federal Reserve rate cut. The latest economic data points, including the Core PCE Price Index and the Chicago PMI, have painted a nuanced picture of the US economy, driving bullish sentiment for Bitcoin.

US Inflation Data and Potential Fed Rate Cut

Bitcoin’s rally coincides with the release of key economic data in the United States. The Core PCE Price Index, a crucial inflation metric favored by the Federal Reserve, rose by 0.2% month-over-month in April, meeting expectations but falling short of the previous month’s increase. This moderate uptick in inflation may alleviate some concerns for the Fed, potentially paving the way for a rate cut later this year.

However, the Chicago PMI, an indicator of manufacturing activity, dropped to 35.4, signaling weaker-than-expected performance in this sector. This divergence in economic indicators underscores the complex economic landscape, contributing to a bullish outlook for Bitcoin.

The chart indicates that Bitcoin experienced a significant price increase from December to April, marked by large green candlesticks. Following this surge, the price entered a consolidation phase with fluctuations between approximately $30,000 and $40,000. This phase is characterized by a mix of red and green candlesticks, suggesting market indecision.

The high volume node around $60,000 suggests that this price level is of significant interest and may act as a key resistance or support level in future price movements. The consolidation after the earlier rise could indicate that the market is in a state of equilibrium, with no clear direction for the immediate future.

Overall, the chart suggests that after a period of rapid growth, Bitcoin’s price has stabilized, and traders might be waiting for further signals before making significant moves. The $60,000 level could be crucial for determining the next trend in Bitcoin’s price trajectory.

Disappointing US GDP Data Underpins Bitcoin Price

Bitcoin’s upward trajectory has also been supported by disappointing US GDP data, which revealed a slower-than-expected growth rate of 1.3% in the first quarter of the year. This underwhelming performance has led traders to anticipate a Federal Reserve rate cut in the near future, exerting downward pressure on the US dollar and bolstering Bitcoin’s appeal as a hedge against inflation.

Bitcoin (BTC/USD) Technical Outlook: June 1, 2024

Bitcoin is currently trading around $67,900, with the pivot point set at $68,100 serving as a critical indicator for market direction. Immediate resistance levels are identified at $68,800, $69,800, and $70,600, while support levels are situated at $67,500, $66,600, and $65,900.

Technical indicators, including the Relative Strength Index (RSI) and the 50-day Exponential Moving Average (EMA), suggest a neutral to bearish sentiment, with the pivot point at $68,100 serving as a significant dynamic support level.

Conclusion

Bitcoin’s rally to $67,900 reflects a confluence of factors, including mixed economic data in the US, expectations of a Federal Reserve rate cut, and weakening US dollar. As investors navigate this uncertain economic environment, Bitcoin remains a favored asset class, with potential for further upside if economic conditions continue to support its growth trajectory.


Disclaimer: The above analysis is based on market trends and technical indicators, and does not constitute financial advice. Investors should conduct thorough research and consult with financial experts before making investment decisions.


BTC Price Forecast for August 2024

Crypto analysts have checked the price fluctuations of Bitcoin in 2024 and in previous years, so the average BTC rate they predict might be around $66,001.95 in August 2024. It can drop to $62,581.89 as a minimum. The maximum value might be $69,422.01.

September 2024: Bitcoin Price Forecast

In the middle of the year 2023, the BTC price will be traded at $66,046.62 on average. September 2024 might also witness an increase in the Bitcoin value to $69,963.84. It is assumed that the price will not drop lower than $62,129.40 in September 2024.

BTC Price Forecast for October 2024

Crypto experts have analyzed Bitcoin prices in 2024, so they are ready to provide their estimated trading average for October 2024 — $71,958.37. The lowest and peak BTC rates might be $59,868.91 and $84,047.82.

November 2024: Bitcoin Price Forecast

Crypto analysts expect that at the end of summer 2024, the BTC price will be around $80,497.04. In November 2024, the Bitcoin cost may drop to a minimum of $76,727.50. The expected peak value might be $84,266.57 in November 2024.

BTC Price Forecast for December 2024

Having analyzed Bitcoin prices, cryptocurrency experts expect that the BTC rate might reach a maximum of $83,467.39 in December 2024. It might, however, drop to $53,284.53. For December 2024, the forecasted average of Bitcoin is nearly $68,375.96.

January 2025: Bitcoin Price Forecast

In the middle of autumn 2024, the Bitcoin cost will be traded at the average level of $55,385.99. Crypto analysts expect that in January 2025, the BTC price might fluctuate between $52,077.80 and $58,694.18.

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