Bitcoin Fed-induced rally is a bull trap... "BTC will hit $80k before halving" optimism continues

The price of cryptocurrency giant Bitcoin (BTC) has been fluctuating between $68,000 and $64,000 over the past 24 hours. Following the Fed's dovish comments the day before, the BTC price seemed to gain momentum and regained the $68,000 level intraday, but failed to break through the $68,000 resistance level due to profit-taking selling.

According to CoinGlass data, short positions liquidated in the last 24 hours reached nearly $120 million. "The previous day's price spike led to a 'bull trap,' a temporary bounce that occurs in bear markets, and bitcoin gave back a significant portion of its gains," said crypto news outlet Yutoday. It remains to be seen whether bitcoin will remain range-bound during the remaining period of volatility. However, sellers are likely to renew their attempts to push the price below $60,000 after Wednesday's failed attempt," said Khan.

"The massive outflows recorded in Grayscale's GBTC are likely to fuel the current bearish sentiment. An additional $281 million was lost on Wednesday, making it the largest outflow ever recorded." However, optimism still seems to dominate the market. This is likely due to expectations that the upcoming halving will be a catalyst. "Bitcoin could rise to $80,000 before the April halving and then break $100,000 the following month," said Jonathan de Wet, chief investment officer at Melbourne, Australia-based digital asset manager Zerocap, according to DL News. "The Fed's stance last night (to cut interest rates later this year) also supported the bullish outlook for bitcoin," he said. Wall Street investment bank Bernstein also predicted that BTC will reach $90,000 by the end of the year, driven by a new bullish cycle and inflows into bitcoin spot exchange-traded funds (ETFs).

Currently, bitcoin is trading around $65,500, down about 11% from its all-time high of $73,750 in March, according to CoinMarketCap.