Bitcoin has experienced extreme price fluctuations recently, with an impressive rise to $116,000 right at the start of the Wall Street trading session. Speculation among traders is rife about where the price of Bitcoin (BTC) will head next.
Key Points:
- Bitcoin hit $116,000 again as prices surged amidst the US market trading.
- Divergent opinions among traders about the short-term price movement, with anticipations of reaching $117,000 before the Federal Reserve’s interest rate decisions on Wednesday.
- Increased focus on the CME futures gap as a potential downside target.
Data from Cointelegraph Markets Pro and TradingView show a daily increase of 1.6% in BTC price, landing at $116,077 on Bitstamp. This drastic change caught many traders off guard, as Bitcoin defied the usual pattern of dropping ahead of significant US inflation events, particularly the upcoming Federal Reserve interest rate decision.
The Federal Open Market Committee (FOMC) is widely expected to announce a rate cut of 0.25% on Wednesday, and traders are keen to decipher hints regarding future policies from Fed Chair Jerome Powell during the press conference that follows.
Quote from Michaël van de Poppe:
“I would assume that we’re bottoming here today and that we start the uptrend in the remainder of the week.”
Translation: “Eu assumiria que estamos chegando ao fundo hoje e que começaremos a tendência de alta no restante da semana.”
Traders have speculated that, given the concurrent drop in gold prices, the resurgence in Bitcoin is also due to an inverse relationship between these two assets. The current commentary regarding a CME gap indicates that traders might anticipate further price adjustments, with some maintaining a target of $117,000 before reassessing the weekend gap around $111,000.
In this fluctuating market, continuing uncertainties surrounding trading volume and potentially bearish indicators may lead to doubts on whether the bullish trend will hold or yield new all-time highs.
Disclaimer: This article does not provide investment advice. All investments come with risks, and readers should conduct their own research before making decisions.
