Falling Fed Rate Cut Chances Keep Bitcoin Around $70,000

Bitcoin is once again moving in a zone of uncertainty around $70,000. Behind this apparent stability, the markets are scrutinizing a determining factor: American monetary policy. The latest economic data released in the United States has dampened expectations of a rapid rate cut by the Federal Reserve. Thus, the chances of an easing in March have almost evaporated. In this context, the crypto market is entering a wait-and-see phase. Between macroeconomic signals and key technical levels, analysts are now trying to anticipate the next direction of bitcoin.y

Bitcoin stabilizes around $70,000 after latest economic data

Bitcoin is moving in a wait-and-see phase around the $70,000 threshold, while the markets are digesting several American economic indicators and Strategy has just signed its biggest STRC day. The published data did not provoke a major reaction in the markets, but it confirmed a still uncertain macroeconomic environment.

Here is the key elements observed by investors:

• Weekly U.S. jobless claims reached 213,000 for the week ending March 7, in line with market expectations;

• The markets also reacted to the recent publication of the consumer price index (CPI), also generally aligned with analysts' forecasts;

• Chances of a rate cut at the March 18 Federal Reserve meeting, according to CME Group's FedWatch tool fell below 1%.

These macroeconomic elements have helped to maintain a certain prudence on the financial markets. The lack of immediate prospect of monetary easing reduces risk appetite, which partly explains bitcoin's stabilization in a relatively narrow price zone. Investors are now waiting for clearer signals from the Federal Reserve before anticipating further directional movement in the crypto market.

Traders monitor key bitcoin technical levels

Faced with this macroeconomic uncertainty, traders' attention is turning to the technical levels that currently govern the market. Several analysts believe that bitcoin is moving in a well-defined consolidation zone, likely to last for some time.

Trader Daan Crypto Trades sums up this situation by stating: “anything between these levels may just trap you in erratic movements… Consolidation areas like this may well take several more weeks to resolve”. According to him, the current phase could therefore be prolonged before a clear movement takes shape.

Certain levels are particularly watched by investors. Analysts notably mention resistance around $72,000, while the $62,000 zone constitutes a major support likely to attract market liquidity.

Between these two limits, bitcoin evolves in a zone of equilibrium where buyers and sellers seem momentarily neutralized. Another important technical benchmark is identified around $68,000, corresponding to a key volume point in the current market structure.

This equilibrium phase fuels debates on the dynamics of the current cycle. Some analysts remain cautious. Trader Rekt Capital believes that “bitcoin will soon be halfway through its bear market”suggesting that the market could still move into a longer corrective phase than expected.

According to his analysis, about 75% of the bear market correction has already been completed. If this reading is confirmed, the current consolidation could represent a transition before a new phase of volatility, in one direction or the other, depending on macroeconomic conditions and the evolution of investor sentiment.