Bitcoin (BTC) has struggled to regain momentum amid a challenging market environment, hovering around the $53,000 and $60,000 levels for six consecutive weeks.

After losing the key $70,000 threshold on August 1, the largest cryptocurrency remains at risk of further declines, especially with the upcoming Federal Reserve (Fed) meeting scheduled for September 18, where a 0.50% interest rate cut could significantly impact its price.

BTC’s future hangs in the balance

Doctor Profit Cryptocurrency Analyst’s Latest Insights suggest that the market is closely divided, with an equal chance — 50% — of a 0.25% or 0.50% rate cut. However, Doctor Profit is confident that the Fed will opt for a larger cut, citing the need for decisive action in the current economic climate. He notes that “a 0.25% cut is simply too small where we are right now.”

Analyst says failure to introduce a 0.50% cut could lead to market turmoil reminiscent of “Bloody Monday” experienced on August 5, which resulted in Bitcoin price falling to a low of $48,900, causing the price to drop by almost 25%.

Doctor Profit believes this could signal a recognition of the Fed’s past strategies and an positive outlook for the economy, potentially paving the way for the future. interest rate cuts.

Given these potential scenarios, the analyst warns of potential market manipulation and “fraud” that could mislead investors on both sides of the trade. In addition, geopolitical tensions, particularly regarding the Israel-Lebanon situation, add another layer of complexity and could exacerbate market concerns and volatility.

Despite the short-term risks, Doctor Profit remains positive about Bitcoin’s long-term prospects, particularly through the end of Q3 2025.

The analyst believes that each short-term panic will eventually be offset by a return to expansionary monetary policy, as seen in the recent inflow of USDT and other cash injections into the market. It highlights that once interest rate cuts are implemented, the Fed’s money printing will likely resume, providing a basis for the recovery.

Bitcoin Price Analysis

Taking a closer look at the current price action, analyst Ali Martinez recently noticed that the bitcoin price is moving in a parallel channel on the hourly chart.

Martinez claims that Bitcoin could rebound to the mid or upper levels if the lower boundary holds, targeting $60,200 or $62,000. However, Martinez warns that a break of the $58,100 support level could lead to a decline towards $55,000.

Looking at it from a broader perspective, Martinez also overview of the most crucial events regarding trends in the dynamics of bitcoin’s market value to realized value (MVRV). Bitcoin has been in a downtrend since breaking below $66,750 in June, and this negative trend has yet to show signs of reversing.

To invalidate this indicator, BTC needs to break above this level and reclaim it as support, which could signal a continuation of the expected uptrend rally towards the record high of $73,700 reached in March this year.

At the time of writing, the largest cryptocurrency on the market is valued at $58,440 and is down over 3% in 24 hours.

Featured image from DALL-E, chart from TradingView.com