With the US federal government’s interest rate cut quick approaching, analysts at QCP Capital, a global digital asset trading firm and market maker, shared their thoughts forecast on how this development could affect the price of Bitcoin.

Analysts believe the upcoming US non-farm payrolls report and Friday’s GDP data will play a key role in shaping bitcoin market sentiment.

It is worth noting that these economic indicators will provide greater clarity on whether the Federal Reserve will begin a rate-cutting cycle at the next Federal Open Market Committee (FOMC) meeting scheduled for September 18.

Economic Data Will Influence Bitcoin Market Movements

QCP analysts revealed that the anticipation of these events has prompted market participants to position cautiously, which in turn signals potential for “limited volatility” for Bitcoin in the near future.

The U.S. nonfarm payroll report, due out on September 6, is one of the most essential economic indicators that could influence the Federal Reserve’s interest rate decisions.

The previous report from earlier this month showed an enhance The US unemployment rate rose from 4.1% to 4.3%which has caused a noticeable decline in the global financial market. Notably, this enhance has raised concerns that the Fed may be falling behind in its efforts to adjust rates accordingly.

In addition to the payroll data, today’s upcoming US GDP report could also impact Bitcoin’s price performance, although analysts at QCP Capital believe its impact on the cryptocurrency market may be restricted. The analysts noted:

Today’s US GDP report will likely have no bearing on cryptocurrencies, especially if it confirms the ongoing narrative that the US economy is slowing.

Bitcoin Market Performance and Price Action Outlook

Bitcoin has resumed its downtrend amid upcoming economic events after briefly bouncing back to above $61,000 yesterday.

Bitcoin is currently trading at $58,285, down 4.3% in the past 24 hours. This decline has prompted various market analysts to provide updated insights into the asset’s near-term prospects.

For example, Elja Boom, a well-known cryptocurrency analyst at X, commented on the ongoing consolidation: stating:

No signs of a breakout yet. Consolidation could occur until October before a breakout. I am confident of a breakout in Q4, but there will be a bit more volatility before then.

Meanwhile, another analyst, known on X as the “Titan of Crypto,” provided that short-term update, highlighting a key resistance level. The analyst highlighted the $59,600 level as a major level for Bitcoin.

According to the analyst, if Bitcoin were to regain these price levels and break through the “cloud,” “the clouds would turn from resistance to support,” and this could result in a significant enhance for Bitcoin.

#Bitcoin Short term update

If #BTC reclaims $59,600 and breaks through the cloud formation, the clouds turn from resistance to support.

This could cause an upward movement. photo:twitter.com/1XdS3zeBCZ

— Crypto Titan (@Washigorira) August 30, 2024

Featured image created with DALL-E, chart from TradingView