Bitcoin Awaits Breakout as Market Anticipation Builds, Analyst Notes

Bitcoin is currently hovering around the $62,000 mark, with no significant movement over the past day, according to data from CoinMarketCap.

Bitcoin’s price action has largely consolidated over the past 24 hours, with the cryptocurrency trading around the $62,000 mark. BTC’s price has slid from its local peak of $62,400 on Friday, March 24. However, the coin’s price is still up 0.02% over the past day, and seven days.

Bitcoin’s price has remained range-bound since March, with the cryptocurrency trading between support at $58,000 and resistance at $64,000. While many investors are anticipating a bullish breakout in the fourth quarter of 2024, several market conditions need to be met for this to happen.

One key factor that will determine Bitcoin’s price action in the coming months is the Federal Reserve’s monetary policy. The Fed has been raising interest rates aggressively in order to combat high inflation. However, market analysts believe that the central bank will be forced to cut rates in 2024 as the economy slows down.

If the Fed does engage in a rate-cut cycle, this will be bullish for Bitcoin and other risk assets. Lower interest rates make it more attractive for investors to put their money in high-yielding assets, such as cryptocurrencies.

Another bullish factor that could help Bitcoin break out of its current range is quantitative easing by the US government. Quantitative easing is a monetary policy tool that the government uses to inject liquidity into the economy by buying Treasury bonds or other financial assets.

If the US government does engage in another round of quantitative easing, this will put more money in the hands of individuals, who may then choose to use it to buy Bitcoin or other cryptocurrencies.

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