Bitcoin Bulls Push Price Above $60,000 As These Key Macro Tailwinds Come In – BTC Breakout Back to $70,000 Incoming?

Last updated:

Author

Joel Frank

Author

Joel Frank

About Author

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology…

Last updated:

Why Trust Cryptonews

With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews

Bitcoin Bulls Push Price Above $60,000 As These Key Macro Tailwinds Come In – BTC Breakout Back to $70,000 Incoming?
Bitcoin Bulls Push Price Above $60,000 As These Key Macro Tailwinds Come In – BTC Breakout Back to $70,000 Incoming? / Source: TradingView

Bitcoin (BTC) pushed back to the north of the $60,000 level on Wednesday, with traders eyeing a major BTC breakout back towards $70,000 as macro tailwinds come in.

The minutes of last month’s Fed meeting were dovish, with most policymakers supporting interest rate cuts starting next month.

That all but confirmed what everyone already new – rate cuts are coming.

Indeed, fed funds futures markets currently imply a more than 70% likelihood that the Fed will have lowered interest by at least 100bps by this time next year, per CME data.

While the dovish Fed meeting minutes weren’t a surprise to the market, they are still acting as a tailwind.

That’s because an easing of global liquidity conditions (i.e. lower interest rates resulting in more money being created) is generally associated with a rising Bitcoin price.

As Thursday’s US PMI data and Friday’s speech from Fed Chair Jerome Powell near, the risks of a BTC breakout are growing.

BTC Breaking Incoming? Here’s Why a Retest of $70K Could Be Incoming

Assuming economic data doesn’t show the US economy tipping into a recession, but the Fed remains on course to lower interest rates, marco is set to remain a tailwind for Bitcoin.

Politics may also be acting as a tailwind on Wednesday.

Per Polymarket, pro-crypto Republican Presidential nominee Donald Trump is once again the favorite to win the November election.

Amid fears that his main rival Democrat nominee and sitting VP Kamala Harris might continue the Biden administration’s anti-crypto policies, a growing likelihood of a Trump win is likely to support Bitcoin.

See More: Kamala Harris Reportedly Considering Gary Gensler for Treasury Secretary if Elected

Technicals also suggest a growing chance of a bullish BTC breakout.

Bitcoin has formed a pennant structure in recent weeks.

The price has been capped by resistance in the form of the 50DMA, last at $61,300.

A breakout above here, and above the 200DMA near $63,000, could kickstart a rally back to recent highs at $70,000.

Bitcoin Bulls Push Price Above $60,000 As These Key Macro Tailwinds Come In – BTC Breakout Back to $70,000 Incoming?

Short-term traders might be able to make some profits, but this wouldn’t be a major BTC breakout.

A retest of $70,000 would only see Bitcoin returning towards the top of its multi-month range.

Catalysts later in the year, such as ongoing Fed rate cuts and a possible Trump election victory, could trigger a rise towards $100,000.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

You May Also Like