Highlights
- Bitcoin price shows signs of a bounce as it approaches key support level of $57,201.
- Tether minted $1 billion USDT on September 6, which could propel BTC.
- The highly anticipated US Fed rate cut has a high probability of making or breaking the ongoing recovery rally.
Bitcoin (BTC) price correction that began on September 14 could end soon, triggering another reversal rally. One of the main reasons for this short-term pivot is the highly anticipated US Fed rate cut decision on September 18. Additionally, stablecoin issuer Tether, minted $1 billion USDT on Monday.
Tether Mints $1B as BTC Price Forecasts Reversal
On September 16, 1:50 AM ET, Tether minted $1 billion USDT. Such developments, in the past, have moved markets as this is net bullish for the crypto community.
According to data from Santiment, the total supply of Tether (USDT) on exchanges has shot up by 8.06 billion since 2024. In the past 24 hours, a billion USDT was added to the exchange stablecoin supply.
Interestingly, the active stablecoin deposit transactions to exchange has remained roughly the same, i.e., between 9000 and 14,000 since 2024.
Will Bitcoin Rally Ahead of Fed rate cut?
From September 7 Bitcoin price shot up 12%, leading to a local top formation on September 14. As a result, BTC corrected nearly 3% and currently trades today at $58,800. The highly anticipated Fed’s rate cut decision on September 18 is also a key catalyst that could influence BTC price.
Based on the FedWatch Tool, the 50 bps rate cut has 59% odds. Regardless of the degree of rate cut, crypto investors are looking at two outcomes.
- A risk-on scenario where financial markets, tradition or crypto shoot higher. In this case, Bitcoin, Ethereum (ETH) and other cryptocurrencies are likely to continue their ascent. BTC could aim for a $65K retest, followed by an attempt to reclaim $70K as a support level.
- A risk-off outlook where he risks outright the reward, causing many investors to convert their assets into safer entities like cash or stablecoins. If such a scenario unfolds, stock and crypto markets are likely to collapse due to panic selling. Considering the multiple recession signals that have popped up, the US economy could slip into a crisis mode.
So, while the market anticipates Fed’s rate cut decision, investors prepare for a sell-the-news or buy the rumor events. Currently, Bitcoin price trades at $58,800 and is looking for a stable support level to trigger a bounce.
Bitcoin Price Technical Analysis: BTC Recovery Rally
As noted previously Bitcoin respected the declining trend line and the 50-week Exponential Moving Average (EMA), resulting in a 12% rally. The ongoing correction is also likely to stabilize around the daily support levels at $57,201 and $57,970.
A bounce from these footholds could provide the right momentum to retest the next key hurdle at $60,741 to $61,337. Clearing these short-term blockades could send BTC to $63,987, this Bitcoin price forecast hints at another 10% rally.
On the contrary, if Bitcoin price slides below the $57,201 support level, chances of a 5% correction to revisit the 50-week EMA at $54,291 multiply. A massively bearish outlook could unfold if BTC loses the $50,000 psychological level.
Frequently Asked Questions (FAQs)
1. What is the expected impact of Tether's $1 billion USDT mint on Bitcoin price?
2. How will the US Federal Reserve's rate cut decision affect Bitcoin price?
3. What are the key support levels for Bitcoin price?
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