Bitcoin Approaches $88,000 Amid Resurgence of Fed Rate Cut Expectations

Bitcoin prices have tested the $88,000 mark twice in recent hours but faced resistance, leading to sharp pullbacks on both occasions. As of now, the asset is trading around $87,000, gradually recovering from a dip below $82,000 last week fueled by renewed hopes for a Federal Reserve rate cut. Analysts remain optimistic, suggesting that a liquidity injection could uplift the market and indicate that we are not in a bear market yet. Analyst Daan Crypto Trades pointed out on Sunday that Bitcoin has completely lost its Bull Market Support Band, with a significant $20,000 gap to reclaim this critical level. Nonetheless, he believes the asset is likely to revisit this band as long as the lows from April are held. Although Bitcoin dropped to $75,000 in April, this recent sell-off has been notably sharper and deeper. Additionally, analyst Rekt Capital noted that if Bitcoin closes above $86,000, it could pave the way for a rise back to $93,000 due to minimal resistance in that range. Meanwhile, fellow analyst Stockmoney Lizards highlighted a Bitcoin wedge breakdown and oversold RSI, reminiscent of patterns observed earlier this year. On the contrary, crypto commentator Colin Talks Crypto advised caution against becoming overly bullish, emphasizing that while a relief rally is likely, significant resistance levels must be breached for any possibility of reaching new all-time highs. As of the latest update, Bitcoin is trading near $87,000 following a weekend uptick.