In the medium term, bitcoin may continue to consolidate and even drift slightly lower than current prices, which are about $9,500 right now.
However, there is a possible catalyst this week that may cause a bounce in the very near term.
What catalyst am I talking about?
The FED is expected to announce a rate cut this week.
It is not for sure that they will, but many are speculating that there is a very good chance that they will.
Recently, part of the bullish momentum in bitcoin has been attributed to an "easy-money" environment.
IE, one where interest rates are being lowered instead of raised and quantitative easing is said to be on the back burner as a safety net should the economy sputter.
That is exactly the kind of environment that one would expect bitcoin to catch a bid in, just like it has.
A weaker dollar = upside in bitcoin.
The environment in 2018 was exactly the opposite with multiple rate hikes, a stronger dollar, and QE was a distant memory.
All that has changed now, and that is great news for bitcoin!
With roughly half of the bitcoin trading now happening in the US, what happens here in the US matters a great deal to prices.
I would not be surprised to see a rate cut later this week and bitcoin bounce back up near $11k at some point this coming week, possibly even $12k.
What it does from there is anyone's guess (actually I think we trend lower afterwards), but in the short term, we are set up for a bounce.
Stay informed my friends.
Image Source:
https://www.newsbtc.com/2019/07/27/fed-interest-rate-cut-is-rocket-fuel-for-bitcoin/
-Doc
