“Bitcoin Breakout Expected as Fed Rate Cut Approaches Analysts Say”

Since March, Bitcoin has experienced sideways trading, with the third quarter, particularly September, historically being a bearish timeframe.

As we near the end of the month and quarter, analysts are shifting their outlook to bullish, forecasting a long-anticipated breakout for BTC and the overall crypto market.

On September 18, market analyst ‘RamenPanda’ noted that the markets have remained stagnant for six months, “yet the price is only slightly down from the previous peak.”

Bitcoin has once again reclaimed the $60,000 mark, sitting at just 18% below its all-time high.

A Major Shift Approaches

The analyst stated that the prolonged period of sideways trading is poised to culminate in a significant rally.

“If you believe we won’t witness a world-shaking rally next, you are utterly delusional. The time spent trading sideways will be met with upward momentum.”

Look, we spent 6 months going sideways, yet the price is barely down from the previous high

Corrections can occur in two ways: price depth or time

A time-based correction, or capitulation, is BULLISH AS HELL

If you think we won’t have a world-shaking rally next,… pic.twitter.com/00RXuAzINB

— RamenPanda (@IamRamenPanda) September 17, 2024

Additionally, economist Alex Krüger pointed out that “sentiment among crypto traders has not been this low since 2022.” He also mentioned that Bitcoin’s current trading level is similar to what it was six months ago, in a post on X dated September 18.

On September 17, Charles Edwards, founder of Capriole Fund, remarked, “You made it through Bitcoin’s worst period,” highlighting that Q3 typically sees bearish trends, while Q4 often becomes bullish.

Analyst ‘Income Sharks’ voiced a similar sentiment, forecasting significant upward movement in Q4.

#Bitcoin – If Q4 isn’t exciting after all this suspense, I don’t know what to say. Price is perfectly in the middle of the channel and OBV is stagnating at the tip of the wedge. pic.twitter.com/IOWObF1BV6

— IncomeSharks (@IncomeSharks) September 17, 2024

On September 17, Bitcoin briefly reclaimed $61,000 but has since dipped back to around $60,500 during the early Asian trading session on Wednesday morning. The cryptocurrency has recovered from September’s lows, showing a 6.7% gain over the past week.

Fed Rate Cut on the Horizon

The U.S. central bank is anticipated to announce an interest rate cut on September 18. However, market sentiments are mixed regarding the extent of the cut.

Currently, the CME Fed Watch tool indicates a stronger inclination towards a 50 basis point cut at 65% odds, compared to a 35% likelihood for a smaller 25 bps cut.

Analysts believe that a larger rate reduction would positively impact high-risk assets such as cryptocurrencies.

“The last time the Fed utilized rate cuts, Bitcoin skyrocketed. If history repeats, the next 6-12 months are going to be extraordinary,” noted crypto YouTuber Lark Davis in a post on X dated September 17.

The Fed is predicted to lower interest rates tomorrow.

The last time this happened, Bitcoin soared.

If past trends hold, the upcoming 6-12 months will be remarkable.

h/t/ @milkroaddaily pic.twitter.com/GxNtThDDwS

— Lark Davis (@TheCryptoLark) September 17, 2024

Nevertheless, the Kobeissi Letter warned, “We have never faced such an uncertain Fed meeting before,” adding, “No matter what the Fed decides tomorrow, half the market is likely to be disappointed.”