Billionaire crypto investor and BitMEX co-founder Arthur Hayes anticipates crypto market recovery as US dollar liquidity is rising again. Hayes has also closed his short position on Bitcoin price, making a 3% profit on the recent market meltdown.
Veteran trader Peter Brandt revealed that Bitcoin price chart is forming a massive inverted head-and-shoulders pattern which is extremely bullish against gold.
In an X post on September 8, crypto billionaire Arthur Hayes disclosed that he closed his Bitcoin short position. He predicts Bitcoin price and crypto market recovery next week, completely shifting away from his sub-$50K forecast earlier.
As CoinGape reported earlier, whales started buying the dips as sentiment turned towards a downfall below the $50K level.
The move comes in response to Treasury Secretary Janet Yellen’s market oversight and statement. Hayes says Bitcoin may gain upside momentum due to expectations of increased dollar liquidity.
In addition, Peter Brandt also turned away from earlier forecasts of a $46K low for Bitcoin. In response to BTC critic Peter Schiff, veteran trader Brandt said Bitcoin is bullish against gold as it sees massive inverted H&S pattern formation.
Notably, crypto market sentiment has slightly improved from “extreme fear” to “fear” over the last day. Crypto Fear & Greed Index climbed from 23 to 29 today.
Crypto traders are still uncertain about crypto market recovery due to the upcoming consumer price index (CPI) on Wednesday and producer price index (PPI) on Thursday. Moreover, the spot Bitcoin ETF market lacks support from institutional investors due to September woes, with nearly $700 million in net outflow last week.
Economists and Wall Street expect the CPI to cool further to 2.6%, down from 2.9%. The slowing labor market and cooling inflation would give the FOMC enough reason to cut interest rates by 50 bps in September.
The CME Fed Watch tool currently indicates a 70% probability of a 25 bps rate cut in September. Also, a total of 100 bps Fed rate cuts this year.
Moreover, while the US dollar index (DXY) has climbed back above 101, the 10-year Treasury yield has dropped to 3.716%, a 15-month low due to softening labor market. This is in favor of Bitcoin price.
CoinGape analysis predicts high odds of Bitcoin price rally. Traders are watching the 50-week EMA, which also played a pivotal role in supporting the 2020 and 2021 bull market correction. If history repeats, a rebound from the 50-week EMA could drive BTC higher, likely triggering the bull run.
The next coming days into CPI Bitcoin will set the market direction for upcoming weeks. BTC price is currently trading at $54,300 and facing resistance after the slight rebound. A descending trendline breakout may target $57,000 if BTC successfully crosses above $55, 508, a 0.236 Fib retracement level.
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