Key Takeaways:
- Bitcoin price remains sideways on Wednesday following the Fed Rate decision.
- Top traders anticipate a breakout and a new all-time high by September.
- The U.S. Dollar Index (DXY) touched the 100.0 mark last seen in May.
The cryptocurrency market displayed signs of weakness following the most recent Federal Open Market Committee (FOMC) meeting, which ended without an expected rate cut and a decision to hold rates constant. Bitcoin (BTC) has been no exception, falling to a price of $115K following the announcement. However, BTC has subsequently recovered to around $118K at the time of reporting, according to CoinMarketCap.
Despite the bearish short-term movement, leading crypto traders’ price projections remain largely positive. Some analysts see the present downturn as a perfect opportunity to accumulate before the next major rebound, which might reach an all-time high (ATH) in August or September.
However, another bullish analysts expect a drop in BTC in early August, followed by upside in the later period of August or September.
Bitcoin’s New-High Before September
Following the FOMC statement, famous trader Michaël van de Poppe, a Chief Investment Officer (CIO) and founder of the MN Fund, tweeted that the present market decline is a “great chance to accumulate.” He said that, while Bitcoin may fall more in the short term, he does not expect the weakness to stay long, predicting a new all-time high in August or September.
His analysis, as shown in the chart below, predicts a critical trading range for BTC between support at around $115.6K and resistance at $119.5K. After losing this range, he says that if the price continues to decrease, the $110K-$112K range would be a “brilliant area to accumulate”. The chart shows that after removing liquidity from below the range, the asset would be “ready for breakout” to test all-time highs.
Updating his analysis, Poppe shared a recent tweet that the dip below the range was a “small liquidity sweep,” a technical event that typically precedes a large move by clearing leveraged positions.
Now that BTC has returned to its trading range, he says his confidence has strengthened, and he believes the market is “extremely primed” to break resistance and reach a new all-time high.
What Other Analysts Predict for BTC
Kelly Kellam (@Kellykellam), a famous trader, confirmed the positive sentiment, pointing out that his price estimate from July 21st has been practically spot on. However, he predicts a period of “chop,” or sideways, unpredictable price activity.
According to his forecast, this consolidation will last until about August 5th, following which the market will resume its upward trajectory through the middle of the month.
Following a temporary “reset” or pullback, he expects the next major surge to start in mid-September. Kellam has shown on his X post that BTC breaks out of a declining trendline that began at the $123,204 top before beginning its next ascent.
Bitunix analyst has made the following recommendations: The critical support level to watch is $117,000, which serves as a turning point for the market.
Meanwhile, bulls must break through the immediate resistance level of $118,500 to retain their upward momentum. According to the expert, keeping a careful eye on PCE data and tomorrow’s non-farm payroll figures will provide insight into future market moves.
The U.S. PCE price index rose 0.3% in June, its largest increase in four months, meeting market expectations but lowering chances for a Federal Reserve interest rate cut in the near future.
Conclusion
While the FOMC’s hawkish position first shook the crypto markets, but BTC managed to climb back later on. Leading analysts are still bullish and eyeing for BTC to breakout by August or September. According to Michaël van de Poppe, Bitcoin might reach a new all-time high as early as September.
