Bitcoin (BTC) Price Nears Critical Support Level as Market Bottom Signals Emerge

This aligns with market expectations of another rate cut after the 50 basis points easing announced on Sept 18.

After the 50 basis points easing announced on Sept 18, market expectations are set for another rate cut.

Moreover, Bitcoin's sharp rebound on Thursday suggests a potentially bullish trend compared to the broader cryptocurrency market's performance over the past week.

The TOTAL2 chart (excluding BTC) indicates that the total market cap of altcoins has declined by 13.5% since the Middle-East crisis triggered a sell-off on September 27. In contrast, Bitcoin's price trend as of October 3 reflects only a 10% decline over the same period.

This divergence in performance is significant as it often signals a market bottom and bullish reversal. When Bitcoin outperforms altcoins during a broader market dip, it could indicate that BTC is nearing a critical support level, leading traders to reenter long positions.

Traders Mount $881M Support at $59k as NFP Forecast Sparks Rebound Hopes

In addition to the Fed chair’s comments, analysts are largely expecting the next Non-Farm Payroll (NFP) data to set the stage for the Fed to carry out a second consecutive rate cut.

The latest jobs market data for September 2024 will be unveiled by the US Bureau of Labor Statistics on Friday, October 4.

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