Prominent crypto analyst Ted outlined why to key economic indicators and central bank actions could prompt significant price movements for Bitcoin BTC/USD in the upcoming week.
What Happened: Ted points out that recent consumer and producer price inflation data showed positive trends for risk assets, indicating ongoing disinflation. However, the Federal Reserve’s messaging suggested caution, as they advised the market not to anticipate immediate rate cuts.
Last week's FOMC meeting revealed a revised dot plot. While March’s dot plot suggested 2-3 rate cuts in 2024, June's update indicates expectations for just 1-2 cuts by the year's end. This aligns well with current market pricing and likely fulfills the Fed’s goal of setting market expectations in line with their projections.
Despite these conservative projections, the Nasdaq has hit new all-time highs, reflecting optimism around the potential for easier central bank policies. Bitcoin saw implied weekly ranges between $65,100 and $74,100, with Ethereum ETH/USD ranging between $3,388 and $4,025.
Bitcoin must maintain its $66,000 support level to prevent a sell-off that could trigger significant liquidations. Ted notes that if Bitcoin falls below this level, it could empower sellers and apply downward pressure on the market.
Price Action: In the past 24 hours, BTC is trading 1.9% down at $65,394.
Also Read: What’s Next For Bitcoin? ‘Bounce Incoming,’ Says One Trader But Not Everyone Agrees
Why It Matters: Bulls are looking for continuous disinflation signs to feel confident in the Fed easing its restrictive stance. Ted emphasizes, "The data is clearly pointing towards a shift to more accommodative monetary policy—and potentially sooner rather than later."
Ted highlighted the critical events to watch for the upcoming week: ETH/BTC performance which will be impacted amid the anticipation of spot Ethereum ETF launches on Wall Street. Decisions from the Swiss National Bank (SNB) and Reserve Bank of Australia (RBA) are expected to hold, which could influence market sentiment.
Lastly, last week's slow ETF flows for Bitcoin could rebound if this week's macroeconomic indicators favor risk assets.
Ted advises maintaining a sharp mind and prudent risk management is crucial in this environment. Traders should consider buying opportunities during dips, reflecting a strategic approach to navigating market volatility.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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