Bitcoin is currently experiencing a decline of over six percent, trading just above $95,000 at the time of writing. The next significant support level is expected to be around $91,000 to $92,000. The recent 0.25% interest rate cut by the Federal Reserve was anticipated and already factored into the market.
Initially, there was minimal reaction to the news, but about thirty minutes later, Jerome Powell’s press conference had a more substantial impact on both the Bitcoin and stock markets, leading to declines in the past day.
The drop was primarily attributed to the market’s revised interest rate expectations for the upcoming year. While many were anticipating further rate cuts, the current outlook is for only one more 25-basis point cut in 2025, prompting a bearish response. Furthermore, Powell’s statement that the Federal Reserve is prohibited from buying or holding Bitcoin unsettled the market.
Bitcoin Price Analysis: What Lies Ahead?
Bitcoin is currently in a downward trajectory, approaching a critical support range. Analysts predicted this decline, with the next major support area estimated to be between $69,400 and $82,500.
Recent price movements indicate a potential correction, suggesting that the market may be nearing the bottom of this phase. Despite Bitcoin’s overall upward trend, there have been indications of an impending correction. Recent price action has been lackluster, showing signs of exhaustion with overlapping movements. Additionally, the $100,000 level has proven to be a formidable resistance for Bitcoin.
The market continues its downward trajectory, with the possibility of further declines before any signs of recovery. Although currently in a downtrend, there is a possibility of a rebound once key support levels are reached. However, confirmation of a reversal will only come with a break above resistance levels.