Bitcoin, which has fallen by more than 8% in the last 7 days, started the new week and the new month with a decline.
While it is wondered whether the decline in Bitcoin will continue, it is estimated that the economic data to come from the USA this week will be decisive.
According to experts, economic data from the US will determine whether the dollar will continue its two-month weakening trend and provide support for risky assets, including Bitcoin and cryptocurrencies.
Speaking to CoinDesk, popular analyst Noelle Acheson stated that FED rate cuts are good for BTC.
Stating that weak future economic data will strengthen the FED's case for a rate cut, Acheson argued that the rate cut will lower the dollar and strengthen Bitcoin.
“A weaker US dollar is good for BTC as it tends to increase monetary liquidity by lowering the cost of capital.
Also, the dollar is the denominator of the most priced pair (BTC/USD).”
According to CME FedWatch, a 25 basis point cut by the Fed in September is priced in at 69%, while a 50 basis point cut is priced in at 31%.
Technical Indicators Point to a Fall in Bitcoin!
Valentin Fournier, an analyst at research firm BRN, said that from a technical perspective, the downward momentum in Bitcoin could continue.
Fournier said that BTC could experience further declines and drop to $56,000 levels.
“Technical indicators suggest that the bearish momentum in Bitcoin may continue.
The MACD is showing increasingly negative momentum, while the RSI is at neutral.
The lower band of the Bollinger Bands remains around $56,000, suggesting that further declines are possible towards this level.”
*This is not investment advice.
