Bitcoin price at risk, Fed rate cut odds fall after strong US GDP data

Source: CryptoNewsNet Original Title: Bitcoin price at risk, Fed rate cut odds fall after strong US GDP data Original Link:

Market Overview

Bitcoin (BTC) was trading at $89,400, a few points above this week’s low of $87,200. The coin faces downward pressure following the U.S. release of strong economic data, which has reduced expectations for Federal Reserve interest rate cuts this year.

Economic Data Impact

A report released by the Bureau of Economic Analysis showed that the economy outperformed expectations in the third quarter, with growth reaching 4.4%, higher than the previous estimate of 4.3% and significantly better than the second quarter’s 3.8% growth.

These numbers suggest the Federal Reserve may not cut interest rates again this year, as analysts expect fourth-quarter growth to exceed 5%. Data on Polymarket shows that odds of three cuts this year dropped by 11% to 27%.

Bitcoin and other risky assets typically perform well when the Federal Reserve adopts a dovish stance, as was evident during the COVID pandemic.

ETF Outflows and Asset Rotation

Bitcoin price also faces headwinds from exchange-traded fund outflows. Data shows that these funds experienced over $708 million in outflows on Wednesday, up from the previous day’s $408 million, with over $1.5 billion in outflows over the last three days.

Bitcoin’s weakness could be attributed to investors rotating toward gold, whose price has surged to record highs. A major investment firm recently boosted its gold price target to $5,400, citing rising central bank and corporate demand.

Technical Analysis

The daily timeframe chart reveals that BTC has retreated significantly over recent days, declining from its year-to-date high of $97,790 to the current $89,300.

The price has broken below the lower boundary of the ascending triangle, confirming bearish momentum. Additionally, BTC remains below both the 50-day moving average and the Murrey Math Lines tool support levels.

The Relative Strength Index has continued to decline, moving below the neutral 50 level and pointing downward.

Price Forecast

The most likely Bitcoin price forecast is bearish, with the next critical support level to monitor at $80,485, representing its lowest level in November.

This bearish outlook aligns with recent commentary from major industry figures, who have warned that Bitcoin will remain under pressure unless it successfully moves above key resistance levels at $100,000 and $103,000.