Bitcoin (BTC) Price Rallies 5% to Reclaim $64K as the Broader Crypto Market Cheers Fed Rate Cut Hints

Bitcoin and the broader crypto market staged a strong recovery breaking out from potential resistance. This was soon after Fed Chairman Jerome Powell's clear indication

Bitcoin price staged a strong recovery breaking out from potential resistance after Fed Chairman Jerome Powell’s clear indication about upcoming interest rate cuts.

After showing signs of weakness and dropping below key support levels, Bitcoin price quickly recovered on Friday. This was soon after the much-awaited statement from Fed Chairman Jerome Powell.

The Bitcoin price is up 5% shooting all the way past $64,000 levels. However, with the broader market cheering this move, it is too early to call for the start of the next bull run.

Bitcoin Price Rally In Response To Powell Speech

Blockchain analytics platform QCP Capital stated that the Powell speech yesterday proved to be a major catalyst for the much-awaited Bitcoin price recovery. However, it notes that rate cuts are certainly coming in September, but Powell hasn’t commented on how much.

Of course, a 25 bps rate cut would be bullish, but market analysts have been expecting a 50 bps rate cut considering the slowdown in the economy. Thus, if the actual Fed rate cut comes at 50 bps, it shows that the central banks taking acute actions to prevent the economy from falling flat.

QCP also noted that last night’s Bitcoin price rally was largely spot-driven as funding continues to remain flat. It also said that BTC has returned to its comfortable range of $61,000 to $70,000 with the selling pressure dropping gradually.

Furthermore, the platform highlighted consistent inflows into spot Bitcoin ETFs over the past week and more. After the Fed rate cut hints on Friday, the total inflows into spot Bitcoin ETFs yesterday were $251 million, a 4x surge from its previous day’s inflows.

While next week’s Nvidia earnings and the potential September rate cut are significant, QCP Capital believes that Bitcoin will likely remain within this range until Q4. They believe that the upcoming elections coupled with bullish seasonality could be the catalyst to push Bitcoin to new all-time highs.

Bitcoin Price Range After Breaking $65,000

Popular crypto analyst Rekt Capital explained that the BTC price will enter a new cluster of price-range, the moment it breaks $65,000.

#BTCThe moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action

Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region$BTC #Crypto #Bitcoin pic.twitter.com/vynTNEVdI2

The price action is currently forming a new higher low after bouncing off the support at $59,000. The BTC price has been consolidating within a range of $61,000 to $70,000 after dropping from the high of $73,000.

However, as soon as the Bitcoin price breaks out of this range, it will enter a new cluster of price action. In this case, breaking $65,000 will form a new red cluster ranging between $65,000 to $71,500.

Fed Rate Cuts and US Recession History

While the market is cheering for the upcoming Fed rate cuts and the supposed inflow of liquidity, there’s more to it than what meets the eye. Popular financial analyst Kurt S. Altrichter flashed a cautionary warning about the U.S. economy highlighting the obvious signals of an impending recession.

The analyst stated that every time the market spots an inverted yield curve along with the flattening Fed fund rates, the economy is on a trajectory of recession. He said that as soon as the Fed begins to cut rates and the yield curve turns positive, it is on the verge of a recession.

According to Altrichter, the current market situation has an 85% correlation to the situation seen in 2007, just before the 2008 financial crisis.

Every time we see an inverted yield curve paired with a flattening Fed funds rate, the U.S. economy is heading into a recession

When the Fed starts cutting rates and the yield curve flips positive, we’re on the brink of a recession and a major market crash

This market… pic.twitter.com/YLWM4XKxew

The yield curve has been flattening for the past year and a half now. At the same time, the U.S. economy has been showing signs of slowing down with inflation hitting a 40-year high.

The Federal Reserve has been raising interest rates since March in an effort to curb inflation. However, some economists believe that the Fed is raising rates too quickly and that this could lead to a recession.

The yield curve is a graph that shows the interest rates on different types of Treasury bonds. A normal yield curve slopes upward, meaning that interest rates are higher on

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