Key Insights:
- MACD, on the 2-week Bitcoin chart, showed a buy signal pointing to the possibility of starting a macro trend to reach $87k.
- The upcoming decisions of the Fed may bring the BTC price to the $70,000 mark or continue the upward movement.
- Liquidity and global economic factors may be instructive in determining Bitcoin’s price direction in the following several months.
A potential major movement is expected in Bitcoin price as the technical indicators point to a bull run. Experts are paying much attention to the market, particularly the MACD crossover on the 2-week chart.
Analysts suggest this signal marks the onset of a macro-bull trend. It could potentially drive BTC price to $87K in the near future.
MACD Indicator Crossover Signals Bullish Momentum for Bitcoin
Crypto analyst Ali Charts stated that BTC’s MACD on the 2-week chart has turned bullish. He suggests this could signal an upcoming Bitcoin rise. Similar crossovers in the past have often led to significant moves.
Moreover, another analyst, Egrag Crypto, shared his insights on BTC price movement. He also identified the possibilities of a trading range between $77,000 and $87,000.
As per his assessment, these fluctuations can go up and down depending on factors associated with the external environment. While experienced players may keep their bets, newcomers may choose fast flips.
Meanwhile, a crypto trader, Trader Tardigrade, remains optimistic about the ongoing bull cycle.
He believes that Bitcoin is following a programmed path for a continued rally. This reinforced the idea that the market could see new highs in 2025.
Market Reaction to Federal Reserve and Bank of Japan Decisions
The Federal Reserve’s upcoming policy decision is a key factor influencing the next move of Bitcoin. Egrag Crypto suggested that a hawkish stance from the Fed could push BTC price down to the low $70,000 range.
However, a dovish approach might strengthen the bullish case. This could lead to further gains and a peak in the cycle by May 2025.
Globally, the Bank of Japan (BOJ) recently announced its decision to retain its benchmark interest rate at 0.5%. This move was expected because policymakers benchmarked the country’s performance under Trump’s administration’s policies.
This decision contributed to stabilizing yields on Japanese bonds that could have pressured the price of Bitcoin. The overall market did not respond to the news immediately. However, investors are still concerned about how the world economy might influence cryptocurrency.
Bitcoin’s Liquidity Trends and Future Price Targets
Charles Edwards, founder of Capriole Investments, pointed out a potential change in behavior in US liquidity. He stated that a multi-year bottom might be in the making, meaning that the monetary policies could soon turn around.
As a result, improved liquidity may provide an additional lift to BTC price if the circumstance warrants it.
Edwards noted that Bitcoin’s compounding in monetary value has been less steep than the previous cycle. However, he highlighted a strong and growing liquidity trend.
If the economic conditions begin to improve for higher-risk assets, Bitcoin may follow the sentiment set forth by several analysts.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.