As Bitcoin and Ethereum continue to repeat historical patterns, traders and investors should closely monitor upcoming interest rate decisions and their potential impact on the market. Whether it is a 25 or 50 basis point cut, the direction of interest rates will play a crucial role in shaping market sentiment in the coming weeks.
Recently, new inflation data was released, showing a year-on-year inflation rate of the US Consumer Price Index (CPI) of 2.9%. This figure was slightly below the revised expectation of 3%, but close enough to market forecasts. As a result, the market remained relatively stable, and no major price fluctuations were observed.
Bitcoin Technical Analysis:
According to analyst Josh from Crypto World, Bitcoin is currently trending bearish on the 4-day timeframe, with lower highs and lower lows forming on the chart. The Super Trend indicator is also signaling a bearish forecast. However, on the 2-day chart, Bitcoin is still in a descending broadening wedge pattern. A breakout above the $68,500 resistance level could provide a bullish price objective, but for now, the trend remains bearish.
Short-term support and resistance levels
Bitcoin is facing resistance at several levels including $60,000-61,000, $63,000, and $67,000-68,300. On the support side, key levels are $57,500, $56,000-57,000, and a support zone of $51,000-53,000.
Possible short-term steps
Interestingly, Bitcoin’s current price action resembles the patterns seen during the March 2020 crash. If history repeats itself, we could see a slight bullish recovery in the next few days, followed by choppy sideways movement.
Liquidity levels are also crucial in this context. There is considerable liquidity around the $62,000 mark, especially between $61,800 and $62,200. On the downside, liquidity is concentrated around $57,500 and $56,500. These liquidity zones could act as magnets for price action and influence short-term moves.
