Bitcoin has staged a promising rebound, breaking through a key resistance range, driven primarily by renewed interest in the spot market. According to a recent report from QCP Capital, Powell’s Jackson Hole speech has acted as a catalyst, sparking optimism about a potential September rate cut.
While the exact extent of the rate cut remains uncertain, August’s employment data will play a crucial role in determining the Fed’s decision. A 25 basis point cut is widely anticipated, but a more significant 50 basis point cut could signal that the Fed is taking emergency action to avert economic stagnation.
The current rally is fueled mainly by genuine buying interest in the spot market, although leveraged long positions are expected to rise if Bitcoin maintains its position above the $62,000 support level.
Options traders also appear to be bullish, with an increase in topside positions and long positions in December and March contracts. This suggests a positive outlook for future price action.
In the near term, Bitcoin is predicted to trade within the $61,000 to $70,000 range. However, several potential catalysts, such as the upcoming US election and bullish seasonality in Q4, could trigger a significant price breakout and propel Bitcoin towards new all-time highs.
Further bolstering the bullish sentiment, sell supply is tapering off, and spot ETFs have experienced net inflows in 10 of the past 12 days.
The crypto market appears to be primed for a breakout from its multi-month bull flag formation, and investors are closely watching for signals that could confirm this upward trajectory. Despite the significance of Nvidia earnings next week and the September rate cut decision, the spot market is expected to remain within the current range until Q4.
