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This trend signals the increasing probability of a bullish close for BTCUSD
Mexico City, February 5, 2024 - FBS analysts project an imminent decline in Bitcoin as market players await the next key rate cut from the Federal Reserve in 2024. This trend signals the increasing probability of closure BTCUSD bullish, as rate hikes frequently influence risk assets like Bitcoin. The Federal Reserve's official interest rate, a key factor determining the minimum interest rate for interbank lending, plays a role. substantial in shaping the financial outlook. Market participants have noted a correlation between spikes in the Federal Reserve's policy rate and declines in risk assets, including Bitcoin. As FBS analysts review Bitcoin's performance from 2017 to 2020 , point to a notable 370% rise in early 2019 to $13,000 or the 61.8 Fibonacci level, following public anticipation of rate cuts. However, the trend reversed when rates began to decline, leading BTCUSD lower. The 2021-2024 scenario witnessed the Federal Reserve raising interest rates to combat inflation. Despite initial expectations that these rate hikes would dampen demand for risk assets, the value of Bitcoin rose surprisingly. Market dynamics changed following the Federal Reserve's announcement of a pause in rate hikes in September 2023, with markets pricing in an upcoming rate cut. Looking at financial market trends for 2024, FBS analysts point out the striking similarities to Bitcoin's 2017-2020 pattern. They mainly highlight that BTCUSD reached the 61.8 Fibonacci level around $49,000 and subsequently rebounded, coinciding with market expectations about the possible rate cut by the Federal Reserve. Considering substantial parallels with the past, the FBS analysts anticipate a decline in Bitcoin price towards the $36,000 target following the first Fed rate cut in 2024. Furthermore, if BTCUSD loses this support, it could fall to support levels of $31,000 and even $25,000. This scenario highlights a crucial aspect that is often overlooked in market cycles. Although a reduction in interest rates is expected to have a positive impact on the prices of risk assets such as Bitcoin, it is imperative to recognize the fundamental factor that these reductions usually occur in a context of economic stagnation and slowing growth, causing panic selling and the selling of risky assets.Disclaimer: This material does not constitute a call to trade, nor a trading advice or recommendation, and is intended for informational purposes only.About FBS FBS is a licensed global broker with more than 14 years of experience and more than 90 international awards. FBS is becoming one of the most reliable brokers on the market, with more than 27,000,000 traders and more than 500,000 partners worldwide. The annual trading volume of FBS clients exceeds $8.9 trillion. FBS is also an official partner of Leicester City Football Club. Broadcaster: FBS
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