Bitcoin’s compressed $62K price signals ‘a large’ move next

Bitcoin’s (BTC) price consolidation is signaling a major move ahead, though it could go in either direction, according to a crypto trader.

Two speculative events may tip the scales either way. One is likely further rate cuts by the US Federal Reserve, and the other is the possibility of the US government selling more seized Silk Road Bitcoin.

“Bitcoin is getting very compressed again after trading at this same price level for the past couple of days,” pseudonymous crypto trader Daan Crypto Trades stated in an Oct. 9 X post amid Bitcoin’s price hovering around the $62,000 price level.

Bitcoin is trading at $61,920, down 0.38% over the past 24 hours. Source: TradingView

“Large” move anticipated for Bitcoin either way

Daan Crypto Trades opined that Bitcoin’s “next move likely going to be a large one.” 

He suggested that the direction remains uncertain and could swing either way.

“Your best bet is to wait for confirmation in times like these,” he added — suggesting that traders hold off from accumulating or selling their Bitcoin until the price chart gives stronger signals on its next direction.

Meanwhile, market participants anticipate that the US Federal Reserve may continue cutting interest rates, following its 50 basis points cut on Sept. 18, a move widely anticipated by investors and analysts. 

Further rate cuts are widely seen as bullish for crypto assets as safer investments like term deposits become less appealing to investors.

HSBC is anticipating a 25 basis point cut in November and another 25 bps in December, January, March, May, and June, for six consecutive 25 rate cuts, according to the ForexLive report.

While market commentators see the Fed’s rate cuts as bullish for riskier assets like crypto, they have also expressed concerns about the potential impact on those holding USD.

“The Fed has begun cutting rates. What does that mean? Financial authorities have decided who is paying for their mistakes: those holding US dollars,” Strike CEO Jack Mallers opined in an Oct. 2 X post.

Additionally, Marketwise founder Porter Stansberry warns,

“Most Americans don’t understand…..

Source

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