Bitcoin's price action has taken center stage as traders and investors closely monitor whether it will rally ahead of a plausible rate cut next week, or continue its decline as part of the Red September phenomenon. With mixed signals from both technical indicators and macroeconomic factors, the market is uncertain which direction Bitcoin will move. Let's explore both the bullish and bearish scenarios currently playing out in the market.

The Case for Bitcoin Hitting $61K

Bitcoin has been struggling recently, losing the critical $56,000 support last week. However, a relief rally could be on the horizon. After reaching a local low of $55.4K, Bitcoin is showing signs of consolidation, and bulls are eyeing a recovery. Historically, Bitcoin has demonstrated resilience in similar situations, often bouncing back after significant corrections.

If Bitcoin reclaims the $56,000 support, it could quickly climb toward $58,000, where it faces a minor resistance level. Once that is surpassed, a push toward $61,000 becomes a realistic target, especially given Bitcoin’s tendency for sharp recoveries after prolonged downturns.

We have launched a poll for this cause

Will BTC hit $61k this week?

A key factor contributing to this optimism is the possibility of a U.S. Federal Reserve rate cut next week. This anticipated move could create a more favorable risk-on environment, which tends to benefit Bitcoin and other cryptocurrencies. Additionally, the cryptocurrency market has been eagerly awaiting catalysts that could propel Bitcoin out of its recent slump. A Fed pivot might be exactly what’s needed to push BTC back into a bullish trend, with the $61,000 level becoming the next major resistance to break.

If you think Bitcoin’s price will go up this week, don’t forget to place your bets here.

The Bearish Outlook: Bitcoin Dropping to $50K

On the flip side, the bearish scenario is still very much in play, particularly as we continue through what’s known as "Red September." Historically, September has been a difficult month for Bitcoin, with average drawdowns of around -12%. This historical trend weighs heavily on sentiment, and the recent losses have added to the cautious outlook.

After Bitcoin fell through $56,000 support, the next key level to watch is $50,000. If the broader market continues to experience downward pressure, this level may become Bitcoin’s next destination. Adding to this concern is the overall weakness in the crypto market, with many altcoins also showing limited strength. Should market conditions fail to improve, Bitcoin could struggle to regain momentum, leading to a further correction toward $50,000.

If BTC fails to reclaim $56,000 soon, selling pressure could intensify, driving the price lower. The bearish case is bolstered by the fact that Bitcoin's recent bounce off $55,000 lacks strong volume support, which might suggest that buyers are hesitant to step in aggressively.

If you are a Red September proponent and think Bitcoin is bound to go lower this week, we have a poll that lets you bet on that.

Will BTC hit $50k this week?

Closing thoughts

Bitcoin's price could either soar toward $61,000 or drop to $50,000, depending on how the next few days play out. The bullish case hinges on Bitcoin reclaiming lost support and favorable macroeconomic conditions, particularly the potential Fed rate cut. However, the bearish narrative remains strong as historical trends and recent price action point toward further downside.

Whether you believe Bitcoin is heading for a relief rally or bracing for a deeper correction, the market is poised for some significant moves this week. Which way do you think it will go? Participate in our polls and share your predictions! Regardless of what camp you are in, bull or bear, we have a poll for you here, and here.