FOMC

Jerome Powell

Bitcoin

The United States Federal Reserve’s “hawkish tone” has not swayed a technical analyst’s prediction that Bitcoin&nbsp;will soon surge almost 25% above its all-time high of $73,679 — the “next step” before eventually reaching the cycle’s peak of $123,832.
“$91,539 target left untouched and unchanged for Bitcoin,” pseudonymous technical analyst CryptoCon wrote in a June 12 X <a href="https://x.com/CryptoCon_/status/1801005749990011190" target="_blank" rel="noopener nofollow">post</a> just hours after the <a href="https://www.federalreserve.gov/monetarypolicy/files/monetary20240612a1.pdf" target="_blank" rel="noopener nofollow">release</a> of the Fed’s meeting minutes, which&nbsp;maintained the interest rate, with just one planned reduction in 2024.
CryptoCon supported their Bitcoin prediction using the “Magic Bands” model, which breaks up the cycle into different levels based on previous cycle peaks and bottoms to predict future prices.&nbsp;
The model is based on the idea that once the price of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;breaks through “one primary level”— the current all-time high — it moves onto the “next step” based on previous cycle movements.
According to the model, Bitcoin is currently resisting within level 2.5. However, once it breaks through this consolidation period, it will reach level three at $91,539, followed then by the “Cycle Top Target” of $123,832.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/ebaf7bac-c08f-491b-87b6-b2d8514e67b0.png" alt="" title="">
 <figcaption style="text-align: center;">
 The magic bands model shared by crypto analyst Crypto Con. Source: <a href="https://x.com/CryptoCon_/status/1801005749990011190" target="_blank" rel="noopener nofollow">CryptoCon</a>
 </figcaption>
</figure>
An increase to $91,539 would represent a 34% spike from its current price of $68,315, <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener nofollow">according</a> to CoinMarketCap data.
“Taking some time to reach it at Level 3 of the Magic bands but it’s the next step,” added CryptoCon.
The prediction came despite concern among other traders over the Fed’s “hawkish tone,” which is generally used to describe when the Fed appears to be taking a more aggressive stance to control inflation (including fewer interest rate cuts). 
When interest rates lower, traditional “lower-risk” assets such as bonds become less attractive, and investors are more likely to turn to perceived riskier assets such as Bitcoin. The opposite occurs when interest rates rise. 
“The hawkish tone of the FOMC isn’t positive. Powell’s speech and projections are market-leading for<a href="https://twitter.com/hashtag/Bitcoin?src=hashtag_click" target="_blank" rel="noopener nofollow"> </a>Bitcoin. CPI was super positive today,” MN Trading Consultancy founder Michaël van de Poppe wrote in a June 12 X <a href="https://x.com/CryptoMichNL/status/1800958748334194755" target="_blank" rel="noopener nofollow">post</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-06/92738b65-f53a-4ff2-83e6-5e183b2c2aee.png" alt="" title="">
 <figcaption style="text-align: center;">
 Fed Chair Jerome Powell speaking following the Fed’s two-day policy meeting on June 12. Source: CNBC Television
 </figcaption>
</figure>
“Today’s FOMC is definitely more hawkish than anticipated,” <a href="https://x.com/tedtalksmacro/status/1801004887557157049" target="_blank" rel="noopener nofollow">added</a> independent analyst Ted Talks Macro.
Although 10x Research head of research Markus Thielen believes that the Federal Open Market Committee (FOMC) may have unrealistic expectations.
“The FOMC will likely have to lower their expectations later in the year, as we have already seen the high for this year’s inflation prints,” Thielen told Cointelegraph.
Related: <a href="https://cointelegraph.com/news/bitcoin-price-new-june-lows-open-interest-35b">Bitcoin price hits new June lows while open interest stays above $35B</a>
“While the FOMC expects just one cut, the market still prices in two cuts, down from six at the beginning of the year,” he explained.
The month-on-month <a href="https://cointelegraph.com/news/btc-price-shoots-up-1-5-k-us-cpi-shows-inflation-slowing#:~:text=Month-on-month%20CPI%20was,the%2012%20months%20ending%20April.">Consumer Price Index (CPI) was unchanged in May</a>, while the year-on-year tally was 3.3% — both 0.1% lower than forecast. Following the announcement, Bitcoin gained $1,500 in seconds, surging to $69,636, Cointelegraph reported on June 12.
“The US CPI came in at 3.3%, precisely as we hoped for,” Thielen said.
“A lower CPI has been bullish for Bitcoin, while a higher one has been bearish – leading to the sell-offs in January, March, and April,” he added.
Magazine: <a href="https://cointelegraph.com/magazine/longevity-escape-velocity-jose-luis-cordeiro-biological-immortality-2030/">Longevity expert: AI will help us become ‘biologically immortal’ from 2030</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Analyst targets $91.5K Bitcoin next despite Fed’s ‘hawkish tone’

Cointelegraph

Other articles published on Jun 13, 2024

Taiwan Announces Launch of Crypto Association Amid Regulatory Developments

Bitcoin’s Decline Influences Altcoins

⭐ SelfKey DAO Announces Free SelfKey iD and 50 SELF Tokens – Join Now! ⭐

Nuclear Shiba Coin to Explode 15,000%, Looks to Challenge Shiba Inu and Dogecoin

MoonBag Presale Gathers $2M in One Month, Becomes the Best Presale in 2024, As BitBot and Shiba I...

SEC Chairman Discusses ETH ETF and Crypto Regulations

Join our free newsletter for daily crypto updates!