The Federal Reserve’s recent indication of a more aggressive stance has not swayed a technical analyst’s bold prediction that Bitcoin (BTC) is on the verge of surging nearly 25% above its all-time high of $73,679. This surge to $91,539 is seen as the crucial “next step” before reaching the cycle’s peak of $123,832.
In a post shared on June 12, pseudonymous technical analyst CryptoCon reaffirmed their unwavering Bitcoin forecast, utilizing the “Magic Bands” model. This model dissects the cycle into various levels based on past peaks and bottoms to anticipate future prices. According to CryptoCon, Bitcoin is currently hovering around level 2.5, but once it breaks through this resistance, it is poised to reach level 3 at $91,539, eventually aiming for the “Cycle Top Target” of $123,832.
Despite concerns raised by other traders regarding the Federal Reserve’s hawkish tone, which suggests a more assertive approach to manage inflation, CryptoCon remains confident in their prediction. The Fed’s hawkish tone typically leads to a decrease in interest rates, making traditional low-risk assets like bonds less appealing and potentially driving investors towards riskier assets like Bitcoin.
The recent Federal Reserve meeting resulted in the decision to maintain the interest rate and reduce planned rate cuts from three to just one for the year. This unexpected development raised eyebrows among analysts, with some speculating that the Fed’s expectations may need to be adjusted later in the year.
Amidst this uncertainty, Bitcoin experienced a sudden surge following the announcement, jumping to $69,636. Analysts are closely monitoring the situation, with some attributing Bitcoin’s bullish behavior to factors such as the Consumer Price Index (CPI). A lower CPI has historically been favorable for Bitcoin, whereas a higher CPI has led to bearish trends.
It is important to note that this article does not provide investment advice. Readers are advised to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency market.