Bitcoin (BTC) has shown promising signs of a potential breakout, as outlined by ZAYKCharts in their latest analysis. According to the chart shared, Bitcoin is forming a Bullish Flag pattern on the 3-day timeframe, indicating a continuation of its current upward trend.
Alongside this technical analysis, Wise Advice, a market analyst, discussed the broader economic outlook and its potential effects on the crypto market, offering a cautious yet optimistic view of the near future.
$BTC Bullish Flag Formation in 3D TimeframeWhen a breakout happens,Next Target will be $80K#BTC #BTCUSDT #Bitcoin #Crypto pic.twitter.com/ViDDFVh23o
— ZAYK Charts (@ZAYKCharts) September 18, 2024
BTC’s Pattern Signals Upward Potential
Following a consolidation phase, the BTC chart by ZAYK shows a bullish flag formation—a pattern indicating an upswing. With traders looking for a likely move upward once a breakout happens, Bitcoin’s price has been swinging about two trendlines, creating the shape of the flag.
Lower highs and higher lows define the phase in the flag pattern, therefore showing a decrease in volatility as the price compresses between the trendlines.
With the setup implying an impending breakout, ZAYKCharts notes that this squeeze in price action is generally a forerunner of a movement. Should Bitcoin pass the upper trendline of the flag, it would verify the ongoing positive momentum of the currency.
A breakout from this formation might drive Bitcoin toward a target of $80k, in line with the expected movement based on the length of the first rally, according to ZAYKCharts.
Key Economic Insights from Wise Advice
Adding to the technical analysis, Wise Advice shared insights on the broader market conditions that could influence Bitcoin’s price trajectory. Wise Advice highlighted a growing probability of a 50 basis points interest rate cut by the FED, with a 65% likelihood according to market predictions.
𝐂𝐫𝐲𝐩𝐭𝐨 𝐇𝐨𝐥𝐝𝐞𝐫𝐬 𝐏𝐚𝐲 𝐀𝐭𝐭𝐞𝐧𝐭𝐢𝐨𝐧 The market is predicting a 65% probability of a 50 BPS rate cut. Since the 1980s, the #FED has usually preferred a 25 BPS rate cut to start the rate cut cycle.There were only 2 instances where the first rate cut was… pic.twitter.com/DIZ0GEiiA4
— Wise Advice (@wiseadvicesumit) September 18, 2024
Historically, the FED has initiated rate cut cycles with smaller 25 BPS reductions, except in times of major economic crises like the 2001 dot-com bubble and the 2007 financial crisis.
Wise Advice emphasized that if the FED delays a recession through quantitative easing and rate cuts, the cryptocurrency market could experience a strong bullish cycle. However, if a recession triggers as early as Q1 next year, it could negatively impact the entire market, including Bitcoin.
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Bitcoin’s Future: Bullish or Bearish?
While the Bullish Flag pattern on Bitcoin’s chart signals a potential breakout, Wise Advice’s macroeconomic analysis provides a broader context for understanding market sentiment. Bitcoin’s price is likely to remain highly reactive to FED decisions, especially concerning rate cuts and economic stimulus measures.
Both ZAYKCharts and Wise Advice point toward volatility soon, with the outcome of Bitcoin’s next move heavily influenced by both technical patterns and macroeconomic conditions. The $80K target remains contingent on Bitcoin breaking the $40K resistance, but a recession could derail this bullish scenario.
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The post This Bitcoin Pattern Signals $80K Is The Next Target for BTC Price appeared first on CaptainAltcoin.
