Key Points
- Bitcoin’s price shows volatility ahead of the US Fed meeting, bouncing off $65,500 support twice in 24 hours.
- Despite bullish predictions, a Bitcoin price rally to $100k is unlikely in 2024, according to traders.
The price of Bitcoin has been fluctuating ahead of the US Federal Reserve meeting, bouncing off the $65,500 support level twice in the last day. The market is optimistic about Bitcoin reaching new all-time highs after the anticipated rate cut in September.
A crypto trader known as Rekt Capital has shared on the X platform that Bitcoin has failed to break the $65,000-$70,000 reaccumulation range. He suggests that such a breakout is unlikely within 100 days following the recent Bitcoin halving.
Bitcoin Halving and Price Predictions
On July 29, the Bitcoin blockchain network completed its halving event. Some traders predict that Bitcoin will reach $100k before the end of 2024. However, Daan Crypto Trades, another trader, believes that this milestone is more likely to be achieved in early 2025.
Daan Crypto Trades is currently focused on the $70,000 to $74,000 range. He notes that Bitcoin has faced numerous rejections at these levels over the past few months but expects a rapid price increase once Bitcoin breaks above this range.
Impact of the US Fed Meeting and Options Expiry
The Bank of Japan recently announced rate hikes, raising the interest rate to 0.25%. This has caused some volatility across asset classes, including crypto, equity, and the Japanese Yen.
Investors are awaiting comments from Jerome Powell after the Fed meeting to understand how they plan to address inflation. The likelihood of rate cuts in today’s meeting is low, with most expecting a 25 bps rate cut to occur in the September meeting.
The BioFin Academy has stated that a significant negative gamma exists between $65,000-$70,000, potentially leading to increased price volatility. This negative gamma is largely due to the Bitcoin options set to expire on August 2. Therefore, market fluctuations may increase as the expiration date approaches.
Data from CryptoQuant shows some positive on-chain developments for Bitcoin. There has been an increase in Bitcoin outflows from exchanges, despite Bitcoin’s fluctuating phase since February. This rise in Bitcoin outflows could signal a potential price increase.
