Analyst targets $91.5K Bitcoin next despite Fed’s ‘hawkish tone’

Ciaran Lyons5 hours agoAnalyst targets $91.5K Bitcoin next despite Fed’s ‘hawkish tone’Pseudonymous analyst CryptoCon is confident Bitcoin will surge 25% above current all-time highs — its next big “step” before cracking the cycle’s top of $123,982.3908 Total views9 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe United States Federal Reserve’s “hawkish tone” has not swayed a technical analyst’s prediction that Bitcoin will soon surge almost 25% above its all-time high of $73,679 — the “next step” before eventually reaching the cycle’s peak of $123,832.

“$91,539 target left untouched and unchanged for Bitcoin,” pseudonymous technical analyst CryptoCon wrote in a June 12 X post just hours after the release of the Fed’s meeting minutes, which maintained the interest rate, with just one planned reduction in 2024.

CryptoCon supported their Bitcoin prediction using the “Magic Bands” model, which breaks up the cycle into different levels based on previous cycle peaks and bottoms to predict future prices. 

The model is based on the idea that once the price of Bitcoin (BTC) breaks through “one primary level”— the current all-time high — it moves onto the “next step” based on previous cycle movements.

According to the model, Bitcoin is currently resisting within level 2.5. However, once it breaks through this consolidation period, it will reach level three at $91,539, followed then by the “Cycle Top Target” of $123,832.The magic bands model shared by crypto analyst Crypto Con. Source: CryptoCon

An increase to $91,539 would represent a 34% spike from its current price of $68,315, according to CoinMarketCap data.

“Taking some time to reach it at Level 3 of the Magic bands but it’s the next step,” added CryptoCon.

The prediction came despite concern among other traders over the Fed’s “hawkish tone,” which is generally used to describe when the Fed appears to be taking a more aggressive stance to control inflation (including fewer interest rate cuts).

When interest rates lower, traditional “lower-risk” assets such as bonds become less attractive, and investors are more likely to turn to perceived riskier assets such as Bitcoin. The opposite occurs when interest rates rise.

“The hawkish tone of the FOMC isn’t positive. Powell’s speech and projections are market-leading forBitcoin. CPI was super positive today,” MN Trading Consultancy founder Michaël van de Poppe wrote in a June 12 X post.Fed Chair Jerome Powell speaking following the Fed’s two-day policy meeting on June 12. Source: CNBC Television

“Today’s FOMC is definitely more hawkish than anticipated,” added independent analyst Ted Talks Macro.

Although 10x Research head of research Markus Thielen believes that the Federal Open Market Committee (FOMC) may have unrealistic expectations.

“The FOMC will likely have to lower their expectations later in the year, as we have already seen the high for this year’s inflation prints,” Thielen told Cointelegraph.

Related:Bitcoin price hits new June lows while open interest stays above $35B

“While the FOMC expects just one cut, the market still prices in two cuts, down from six at the beginning of the year,” he explained.

The month-on-month Consumer Price Index (CPI) was unchanged in May, while the year-on-year tally was 3.3% — both 0.1% lower than forecast. Following the announcement, Bitcoin gained $1,500 in seconds, surging to $69,636, Cointelegraph reported on June 12.

“The US CPI came in at 3.3%, precisely as we hoped for,” Thielen said.

“A lower CPI has been bullish for Bitcoin, while a higher one has been bearish – leading to the sell-offs in January, March, and April,” he added.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Federal Reserve# Bitcoin Price# Bitcoin Analysis# Adoption# United StatesAdd reaction