Bitcoin (BTC) holds $95,000 as Fed rate cut odds rise to 60% for June 18 and US economy slumps

Bitcoin (BTC) is once again attempting to break above $95,000 on May 1 as markets price in that the US Federal Reserve might cut rates sooner than expected.

Key takeaways:

Bitcoin price rose on May 1 as the US economic outlook soured further, pushing up the chances of a Federal Reserve rate cut by June 18.

Bitcoin encountered resistance at $95,000, and a sustained break above the zone could propel BTC toward the $100,000 mark.

Key Bitcoin levels to watch remain around the STH cost basis, which is now at $93,200, and the 111-day SMA at $91,300, which is serving as support for the cryptocurrency.

Bitcoin (BTC) attempted to rise above $95,000 once again on May 1 as markets priced in that the US Federal Reserve might cut rates sooner than expected.

Will Fed rate cut drive BTC price higher?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading above the $94,000 at the time of writing, after dipping below the $93,000 on Monday. This came following the release of dismal US GDP data.

The world’s leading cryptocurrency is now attempting to rise above the $95,000 zone, a key level that traders will be focusing on throughout the day.

A sustained move above the $95,000-$95,500 could see Bitcoin encounter the next layer of resistance around $98,000. However, a steeper ascent is possible if traders bid up the cryptocurrency in more strength.

But before that, traders will be watching to see if the new low at $92,000 holds, or if there is another push lower that could bring the $84,000 back into the picture.

Also noteworthy is the short-term holder (STH) cost basis, which comes in at $93,200 and is providing support for Bitcoin.

“The price has recently surged above both key technical levels and is now attempting to consolidate within this zone,” cryptocurrency analytics firm Glassnode said in its latest Week Onchain report.

Its analysis also showed that the 111-day simple moving average (SMA) is providing support for Bitcoin at the time of writing, adding another layer of technical resistance at the 200-week SMA.

What next for Bitcoin price?

According to popular crypto analyst AlphaBTC, a decisive move above the $95,000-$95,500 zone could see Bitcoin move out of consolidation.

This puts the next logical move for BTC/USD toward the $100,000 psychological level. Conversely, another drop below April 30 lows at $93,000 could see BTC sink deeper toward the $84,000 and $88,000 range.

“Bitcoin surges back toward $95K, rebounding from bearish US GDP data,” said pseudonymous Bitcoin analyst BTCmoonmath in a May 1 post on X.

Focus will now turn to how the May 2 jobs report, which is expected to show that the US labor market is still strong despite the gloomy economic outlook, will impact the crypto market and, in turn, Bitcoin price.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.