Bitcoin price starts to recover after dropping to $55,280. Despite favorable data for cryptocurrencies, the price remains low, leading to significant losses for altcoins.
Expectations of Crypto Analysts
Analyst Michaël Poppe expressed satisfaction with the latest data. As Jerome Powell often states, the main job of the Fed is employment and inflation. In the current environment with persistently high inflation, the Fed is forced to raise interest rates sharply. According to historical data, rate cuts should begin 9-12 months after reaching the peak. The latest data signal a decline in employment, which may push the Fed to lower rates soon. "- JOLTS Job Openings -> worst in the last 3 years. - ADP Non-Farm Employment Change -> worst in the last 3 years. - Non-Farm Employment Change -> second worst in 3 years (last month was worse)." As uncertainty about the strength of the US economy increases and the likelihood of significant Fed rate cuts rises, gold prices are moving up, while bond yields are reaching their lowest levels of the new year.
Comments from Kyledoops and Daan Crypto Trades
Two popular analysts focus on different aspects. Kyledoops examines the percentage of Bitcoin UTXOs and its significance, while Daan points out important levels on the chart. Kyledoops noted: "The percentage of Bitcoin UTXOs in profit has fallen to 68.5%, the lowest level since October 2023. This decline indicates selling pressure from profit-taking investors. Historically, such declines have preceded significant price increases; Bitcoin price previously rose by 273% after a similar decline." If history repeats itself, Bitcoin should exceed $150,000. Daan expects a price bounce from the green zones on the chart. The expert, focusing on Fibonacci levels, wrote: "The green boxes are the main areas where I am looking for at least a bounce. In the previous cycle, .618 was incredible. In this cycle, we have made numerous solid rebounds from .786. Whatever happens, these are the last places to make a 'higher low'."
Therefore, given the current economic conditions, Bitcoin price is expected to continue its recovery. Analyst expectations vary, but many point to possible bounce levels and subsequent strengthening.
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