Breaking: Bitcoin Sinks Below $25K Amidst Fed Influence

Breaking: Bitcoin Sinks Below $25K Amidst Fed Influence
Cryptocurrency investors have been facing a tough challenge in making profits lately, and the recent price movements of Bitcoin have sparked concerns of further turbulence. In a volatile week for the crypto industry, Bitcoin has taken a significant hit, dropping below $25,000 for the first time since March 17. This decline can be attributed to an announcement by the Federal Reserve that leaned toward a hawkish stance.

Just a few hours after the Federal Reserve's decision to halt interest rate hikes, Bitcoin experienced a sudden and noticeable decline. This decision came after a string of rate increases over the past fifteen months aimed at combating inflation.

On Thursday, during the early hours, Bitcoin witnessed a 3.7% drop in just one hour, falling from $25,870 to $24,819, according to trading view data. However, it's important to note that Bitcoin has managed to recover some of its losses and is currently hovering just above the $25,000 mark.

Source: Tradingview

Although Bitcoin has seen a modest rebound from its three-month low, there are signs of concern. The ADX indicator on the hourly chart is showing an upward trend, reaching the 43 range. This indicates the potential for further price declines if buyers are unable to sustain the $25,000 zone.

CoinMarketCap data reveals that market bears have taken new selling positions, coinciding with a significant surge in trading volume. In the past 24 hours alone, trading volume has increased by 16%, amounting to a substantial $15 billion.

Source: Tradingview 

Analyzing the daily price scale, it becomes evident that market sellers have successfully broken down the falling wedge pattern, causing Bitcoin's price to trade below key moving averages. Currently, the 200-day simple moving average remains the last crucial point to watch for any potential shift in the prevailing trend.

As selling pressure intensifies, bears face multiple resistance levels, while bulls have limited support at the $24,000 mark. Adding to the bearish sentiment, the Relative Strength Index (RSI) is consistently declining toward the oversold zone, currently residing within the 24-range.

In conclusion, the cryptocurrency market, especially Bitcoin, has faced significant challenges recently. The recent drop in Bitcoin's price, influenced by the Federal Reserve's announcement, has caused concern among investors.

While Bitcoin has seen a slight recovery, there are indications of potential further declines. Increased selling positions and trading volume suggest a bearish sentiment, while technical indicators paint a cautious picture. As the market continues to navigate these challenges, investors will closely watch for any signs of a shift in the prevailing trend.

Previous Next

This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.