Bitcoin bulls are pushing its price above $60,000 in parallel with favorable macroeconomic conditions, can it return to $70,000? Source: Tradingview The price of Bitcoin (Bitcoin-BTC) returned to rise above the $60,000 level on Wednesday, as traders look for a strong start towards $70,000 in parallel with improving macroeconomic conditions, after the minutes of the last Federal Reserve meeting last month came out optimistic, in terms of most lawmakers supporting the idea of cutting interest rates starting next month.
All this confirmed the expectation that interest rate cuts would approach. According to data from CME Group, the Fed’s fund futures markets indicate a probability of more than 70% that the Fed is likely to cut interest rates by at least 100 basis points within a year from now; the apparent optimism at the Fed meeting did not come as a surprise to the market, but it remains a positive impactful event.
This is due to improved global liquidity conditions, as lower interest rates contribute to the creation of more money, which is usually associated with a rise in the price of Bitcoin, and the possibility of this price jump increases in parallel with the release of US manufacturing purchasing managers’ index (PMI) data on Thursday and the speech of Fed Chairman Jerome Powell on Friday.
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Next price jump for Bitcoin? Reasons to believe that Bitcoin will retest the $70,000 level
We will first assume that the US economic data does not indicate a recession, that the Fed will continue to cut interest rates and that macroeconomic conditions will support the price of Bitcoin, in addition to the Polymarket betting likely the victory of the pro-Crypto-Republican presidential candidate Donald Trump again in the November November elections, amid fears that the current vice president and Democratic candidate Kamala Harris will win and continue the Biden administration’s anti-crypto-policy policies, and the likelihood of a Trump victory may contribute to supporting the price of Bitcoin.
Technical indicators also indicate an increasing likelihood of a rise in the price of Bitcoin, which formed the flag pattern on its chart, and the price rise stopped at the resistance represented by the 50-day average movement indicator at $61,300, and if the price succeeds in surpassing this level and the level of its 200-day counterpart index at $63,000, the price could rise towards its recent high of $70,000.
Source: Tradingview In the end, short-term traders may be able to make some profits, but this rise will not represent a major achievement, as a retest of the $70,000 level is just a return to the highs of previous months, and other catalysts this year – such as the Fed’s continued rate cuts and Trump’s election victory – could start an upward movement of the price towards $100,000.
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