Bitcoin is currently down by more than six percent and is trading slightly above the $95k levels at the time of writing. The next major support is around $91,000 to $92,000. The Federal Reserve recently cut interest rates by 0.25% (25 basis points), which was expected and already priced in by the market.
Initially, there wasn’t much reaction when the news was released, but about half an hour later, Jerome Powell’s press conference had a bigger effect on the market. Bitcoin and the stock market both saw declines in the past day.
The main reason for this drop was related to interest rate expectations for next year. While many were hoping for further rate cuts, the market now only expects one more 25-basis point cut in 2025, which caused a bearish reaction. Additionally, Powell said that the Federal Reserve is not allowed to buy or hold Bitcoin, which spooked the market.
Bitcoin is currently in a downward trend, with the price moving towards a key support area. According to analysts, his decline was expected, and the next major support zone is between $69,400 and $82,500.
Recent price action has shown signs of a correction, and the market could potentially be nearing the bottom of this phase. While Bitcoin has been in a general uptrend, there have been hints that a correction was due. The price action has been weaker recently, with overlapping moves suggesting exhaustion. Additionally, the $100,000 level has proven to be a tough resistance for Bitcoin.
The market continues to show downward movement, with the possibility of further declines before any recovery. Despite the current downtrend, there’s a chance that a bounce could occur once the price reaches key support levels. However, we need to see a break above resistance before confirming that a reversal is underway.
At the time of writing, 1 Bitcoin value was $96,748.24.
Considering the present market sentiments, the BTC token may retest its $110k, making it a jump of ~9% in valuation.
As per Coinpedia’s BTC price prediction, 1 BTC could peak at $169,046.
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