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Experts Divided on Fed's Impact on Bitcoin

Experts Divided on Fed’s Impact on Bitcoin

Crypto analyst Ted Pillows forecasted a correction to $92,000.

The leading cryptocurrency has encountered resistance at $116,000, requiring a fresh impetus to overcome it. Analysts at Bitfinex identified two catalysts that could support Bitcoin’s price increase.

According to them, Bitcoin’s current consolidation reflects a waning momentum after reaching a historic high of $124,100 in August. The digital gold’s price has fallen below the entry level of recent buyers who acquired the asset in the $108,000-116,000 range, creating market pressure.

At the time of writing, the leading cryptocurrency had risen to $117,000.

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Hourly BTC/USDT chart on Binance. Source: TradingView.

The rebound occurred ahead of the upcoming Fed meeting on the key rate. All market participants expect a monetary policy easing, which could support a Bitcoin rally.

Bitfinex experts also noted that the fourth quarter is historically strong for the crypto market. Since 2013, Bitcoin’s average return during this period has been 85.42%.

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Source: CoinGlass.

Potential Cryptocurrency Reaction to Fed Decision

Fundstrat co-founder and BitMine chairman Tom Lee predicted a “grand rally” for Bitcoin and Ethereum in the next quarter. He stated that the first Fed rate cut of the year would be a key factor.

Crypto analyst Ted Pillows outlined two scenarios for the future movement of the leading cryptocurrency. In the first, its price may drop to $104,000, and in the second, to $92,000. However, in both cases, after the correction, the asset will move towards new historical highs.

The Fear and Greed Index indicates neutral market sentiment. At the time of writing, it stands at 53 points.

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Source: Alternative.me.

Earlier, MN Capital founder Michaël van de Poppe explained the role of the $117,500 level for Bitcoin’s rally.

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