Bitcoin Price Prediction: BTC Soars Toward $70K on Fed Rate Cut Hopes, NFP Report Focused

Bitcoin (BTC), the leading cryptocurrency, fell from $70,230 during a bearish correction and completed a 50% Fibonacci retracement at around $68,789. This shift is driven by US economic data, increasing expectations of a Federal Reserve rate cut in September.

Anticipation of lower rates has weakened the US dollar, supporting BTC’s bullish stance. Traders are now looking ahead to key US macroeconomic reports this week, particularly the Nonfarm Payrolls (NFP) report on Friday.

Impact of Rate Cut Expectations on Bearish US Dollar and Bitcoin (BTC)

The broad-based US dollar is under pressure due to signs of softening inflation and slowing economic growth, heightening expectations of a Federal Reserve rate cut this year.

This sentiment is supported by the unexpected drop in the ISM Manufacturing PMI to 48.7 in May, down from 49.2 in April and below the forecast of 49.6. This marks the US manufacturing sector’s second consecutive month of contraction and the 18th in the last 19 months.

Traders are increasingly betting on a Fed rate reduction, with the CME FedWatch Tool indicating a roughly 60% chance of a 25 basis point decrease in September. This has prompted the US dollar to fall, supporting Bitcoin (BTC) prices.

On the data front, the US Bureau of Economic Analysis (BEA) reported that the Personal Consumption Expenditures (PCE) Price Index held steady at 2.7%, with the core gauge climbing to 2.8% year-on-year, as expected.

Furthermore, the ISM Manufacturing PMI’s dip to 48.7 in May from 49.2 reflects the worst drop in new goods orders in nearly two years.

Key Points:

• ISM Manufacturing PMI fell to 48.7 in May, indicating contraction.
• CME FedWatch Tool shows a 60% chance of a September rate cut.
• PCE Price Index held steady at 2.7%, supporting BTC prices.

Bitcoin Price Prediction: June 4, 2024

Bitcoin is currently trading at $69,100, marking less than a 0.50% increase, exhibiting a bullish Bitcoin price prediction . The key pivot point is at $68,800, which serves as a critical support level.

Immediate resistance is at $69,600, followed by $70,300 and $70,900. On the downside, immediate support lies at $68,400, with further support levels at $67,900 and $67,300. These levels will be crucial in determining the next movement of Bitcoin.

The technical indicators are pointing towards a bullish trend. The Relative Strength Index (RSI) is at 60, indicating buying momentum. Additionally, the 50-day Exponential Moving Average (EMA) stands at $68,450, reinforcing the buying trend.

Bitcoin Price Prediction – Source: TradingView