Bitcoin price is targeting $118K as odds of a Federal Reserve (Fed) rate cut in September have surged to 94%.
Cryptocurrency analysts are closely watching Bitcoin's price, with many believing a significant surge is on the horizon. A price pattern with 78% accuracy suggests new highs for BTC, especially amid a broader uptrend. Bitcoin has absorbed over $544 billion in capital since November 2022, pushing the realized market cap to $944 billion.
Several analysts have expressed the view that Bitcoin is heading towards higher targets in 2025. For this to happen, BTC must crack the $110,000 resistance. Popular Bitcoin analyst AlphaBTC stated that it is “going to take a big effort to push through the 108K-110K level.” The analyst asserted that the next logical move for Bitcoin would be a pullback to take liquidity around the $105,000-$104,000 zone to gain momentum for a move higher. A four-hour close above $109K could lead to new all-time highs.
The odds of a Fed rate cut in September have increased significantly. Fed Chair Jerome Powell stated that a rate cut in September could be “on the table” if inflation continues to cool. Money markets have priced in full odds that the central bank will cut its key interest rate at its September meeting.
However, Powell emphasized that the Fed will wait to see how the economy evolves before deciding whether to cut rates. Fed officials voted unanimously to hold the benchmark interest rate steady in the current 4.25 percent to 4.5 percent range and gave no indication that rate cuts were imminent.
Analysts predict that Bitcoin could reach higher levels in 2025. Price predictions for Bitcoin in 2025 range between $100,000 and $150,000, depending on ETF inflows, regulatory clarity, and macroeconomic conditions. Some analysts believe BTC could hit a new all-time high if institutional demand accelerates in the second half of the year. Others predict that Bitcoin could reach $175,000 in 2025 and $900,000 by 2030.
Technical analysis indicates that Bitcoin is in a rising trend channel in the long term, showing that investors over time have bought the currency at higher prices. In the short term, Bitcoin is moving within a rectangle formation between support at $100,928 and resistance at $108,198. A decisive break through one of these levels will indicate the new direction for the currency.
Despite the positive outlook, the cryptocurrency market remains volatile. Investors should be prepared for potential price fluctuations and conduct thorough research before making any investment decisions.