- Bitcoin unexpectedly dipped to US$62,989, causing a market downturn and US$226.55 million in liquidations.
- US Fed Chair Jerome Powell hinted at further rate cuts this year, following a significant September cut.
- Analyst RektCapital notes we’re 163 days post-Halving, a timeline that historically precedes a Bitcoin breakout.
- Historical patterns suggest potential for a bullish trend, though it’s speculative whether a major rally will follow.
While many had already expected September to be one of the biggest ever for Bitcoin, the coin had other plans and dipped 3% in the past 24 hours.
The dip to US$62,989 (AU$90,964) caught traders off guard and took down with it the rest of the crypto market, causing US$226.55 million (AU$327.15) in liquidations, as data from Coinglass shows.
The dip comes amid comments by the US Federal Reserve which are rather bullish. Speaking in front of the National Association for Business Economics in Nashville, US Fed Chair Jerome Powell said further rate cuts later this year were on the agenda.
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While the cuts would not be a 50 basis point cut like in September, he added that if the economy headed in the right direction two more cuts with 25 basis points each were a possibility.
Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course. The risks are two-sided, and we will continue to make our decisions meeting by meeting.
Jerome PowellThe September rate cut was historic, as it was the first such cut in four years. Bitcoin and the broader crypto market have rallied following the announcement.
Analyst Says BTC Ready to Break Out
Meanwhile, looking at the Halving, which is now about half a year behind us, analyst RektCapital believes a breakout is imminent.
After the 2020 Halving, on May 11, 2020, Bitcoin entered a phase where its price was relatively stable for a period. This phase allowed investors to accumulate more Bitcoin without causing significant price increases.
163 days after the 2020 Halving, mid-October 2020, Bitcoin started to show signs of a strong upward movement.
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While only speculative – and with the old adage in mind that history doesn’t repeat itself but it rhymes – it remains to be seen whether we will soon see a 2020/21-style bull run or if more pain lies ahead.
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