Mon, September 16, 2024 at 11:55

• 

  Kang-hoon

  • Good morning, Annie.

  • Today, I want to discuss the recent developments in the Bitcoin market.

  • On September 14, Bitcoin began a price correction, but it seems this could end soon, potentially triggering another rally.

  • 
• Annie

  • Good morning, Kang-hoon!😊 That's interesting.

  • What are the main factors driving this potential rally?

  
• 

  Kang-hoon

  • One of the key factors is the highly anticipated US Federal Reserve rate cut decision on September 18.

  • Additionally, Tether, a major stablecoin issuer, minted $1 billion USDT today, which historically has been bullish for the crypto market.

• Annie

  • Wow, $1 billion USDT!

  • That's huge.

  • How does this affect the market?

  
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• 

  Kang-hoon

  • Indeed, it's significant.

  • The increase in USDT supply on exchanges, which has shot up by 8.06 billion since the start of 2024, typically signals increased liquidity.

  • This can lead to more buying power in the market, potentially driving prices up.

• Annie

  • I see.

  • So, what has been the recent price movement of Bitcoin?

  
• 

  Kang-hoon

  • From September 7, Bitcoin's price surged by 12%, reaching a local top on September 14.

  • However, it corrected nearly 3% and is currently trading at $58,800.

• Annie

  • Got it.

  • And what are the market's expectations regarding the Fed's rate cut?

  
• 

  Kang-hoon

  • According to the FedWatch Tool, there's a 59% chance of a 50 basis points rate cut.

  • This decision could significantly influence Bitcoin's price, either driving it higher or causing a sell-off.

• Annie

  • That's quite a pivotal moment.

  • What are the possible scenarios for Bitcoin's price movement?

  
• 

  Kang-hoon

  • If the market adopts a risk-on approach, financial markets, including crypto, could surge.

  • Bitcoin might aim for a $65,000 retest and possibly reclaim $70,000 as a support level.

  • Conversely, a risk-off scenario could lead to panic selling, potentially causing Bitcoin to drop significantly.

  • 
• Annie

  • That sounds like a lot of volatility.

  • How are investors preparing for this?

  
• 

  Kang-hoon

  • Investors are preparing for either a 'sell-the-news' or 'buy-the-rumor' event.

  • Currently, Bitcoin is looking for a stable support level around $57,201 to $57,970 to trigger a bounce.

• Annie

  • And if Bitcoin manages to bounce from these levels?

  
• 

  Kang-hoon

  • A bounce from these levels could provide the momentum needed to retest the next key hurdle at $60,741 to $61,337.

  • Clearing these blockades could send Bitcoin to $63,987, indicating another 10% rally.

• Annie

  • What if Bitcoin fails to hold these support levels?

  
• 

  Kang-hoon

  • If Bitcoin slides below the $57,201 support level, there's a higher chance of a 5% correction to revisit the 50-week EMA at $54,291.

  • A bearish outlook could unfold if Bitcoin loses the $50,000 psychological level.

• Annie

  • This is quite a critical juncture for Bitcoin.

  • So, overall, do you see this news as positive or negative for the market?

  
• 

  Kang-hoon

  • Overall, I see this as positive news.

  • The potential rate cut and increased liquidity from Tether's USDT minting could drive Bitcoin higher.

  • Investors should stay informed and be prepared for both scenarios, but the outlook leans bullish.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.