The Federal Reserve announced the first rate cut since early 2020, with  50 basis points. More rate cuts are on the table going into the end of this year, with another 75 bps anticipated. Bitcoin has risen to $62,000 on the news, with bulls looking to take advantage of increasing liquidity.

A new easing cycle

Not just the U.S., but the world, have entered a new economic cycle of easing, designed to cope with faltering economies, and the next roll-over of staggering piles of debt.

That the first Federal Reserve rate cut in four years should be a large 50 basis point one, is testament to how worried the Fed must be about worsening jobs figures, and a further tipping of the economy towards recession.

It’s in this new, easing monetary environment that Bitcoin now finds itself. The king of the cryptocurrencies is very likely to now start making hay, and to lift itself out of the long and depressing sideways and downwards price action of the last six months.

$BTC ($94,701.00) breaks descending trend line

Source: TradingView

The short term time frame is very revealing for the $BTC price. The descending trend line has been broken, together with what was strong resistance at $61,000, and now the important horizontal level of $58,000 has been left behind in the rear-view mirror.

Into the bargain, the price is currently attempting to take hold above the 0.618 fibonacci. Should it manage to do so, the 0.786 fibonacci awaits above, just past the last local high. For $BTC to make that higher high is critically important, in order to avoid a continuation of the down trend, and to officially set a new uptrend.

The path out of the $BTC bull flag