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Bitcoin Surges Towards $70K Amid Expectations of Fed Rate Cut and Focus on NFP Report

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Bitcoin Price Prediction and Impact of Rate Cut Expectations on BTC

The recent drop in Bitcoin (BTC) price from $70,230 to around $68,789 has been attributed to a bearish correction driven by US economic data and expectations of a Federal Reserve rate cut in September. This shift has also impacted the US dollar, which has weakened due to lower rate expectations, supporting BTC’s bullish stance.

Traders are closely monitoring key US macroeconomic reports, particularly the upcoming Nonfarm Payrolls (NFP) report on Friday. The US dollar has been under pressure due to signs of softening inflation and slowing economic growth, leading to expectations of a rate cut by the Federal Reserve.

The ISM Manufacturing PMI fell to 48.7 in May, indicating contraction in the US manufacturing sector for the second consecutive month. This, coupled with the CME FedWatch Tool showing a 60% chance of a September rate cut, has further fueled the decline in the US dollar and boosted Bitcoin prices.

On the data front, the Personal Consumption Expenditures (PCE) Price Index remained steady at 2.7%, with the core gauge climbing to 2.8% year-on-year as expected. The recent drop in the ISM Manufacturing PMI to 48.7 reflects the worst decline in new goods orders in nearly two years.

Overall, the current market sentiment suggests a bullish trend for Bitcoin, with immediate resistance levels at $69,600, $70,300, and $70,900. The technical indicators, including the Relative Strength Index (RSI) at 60 and the 50-day Exponential Moving Average (EMA) at $68,450, point towards strong buying momentum.

Traders are advised to closely monitor the $68,800 support level, as a breakout or drop below this level could determine the next movement of Bitcoin. The overall outlook remains positive for Bitcoin in the near term, with potential for further price gains.

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