Bitcoin in Holding Pattern after Severe Losses
Bitcoin is down for now but holding onto its price level and could be gearing up to climb much higher soon.
Quick overview
- Bitcoin is currently holding steady at $112,576 after a 3.45% decline over the past week.
- The upcoming Federal Reserve meeting and comments from Jerome Powell are anticipated to significantly influence market movements.
- Despite recent struggles, Bitcoin may find support at its current level and could be poised for a bullish rebound due to favorable stock market conditions.
- Investors should monitor economic reports this week, as they may impact buying and selling pressures in the cryptocurrency market.
Down to $112,576 (BTC/USD), Bitcoin is holding steady at this lower level and could be preparing to return to its recent high as the stock market remains near record highs.
The markets are in a state of anticipation for Tuesday’s Federal Reserve meeting and specifically for comments from chair Jerome Powell after the recent interest rate cut. Bitcoin has taken a hit this week and fallen 3.45% over the last seven days. Now below $113K, the coin may be establishing a support level here as it works its way back up.
BTC/USDIf Bitcoin falls further this week, it could signal investors to sell quickly and could indicate that the coin has lost much of its stability. Bitcoin has been performing worse in recent weeks compared to Ethereum (ETH), and it has lost some of its support from investors, including many of the whale buyers for 2025.
How Fallen Bitcoin Could Get Back Up
Bitcoin investors may buy this dip this week as the coin is at its lowest point in 13 days. The coin is primed for upward momentum thanks to the recent interest rate cut as well as sky-high stock values. The stock indices are at record highs this week, despite minor pullback today. That very positive market sentiment could spill over into crypto currency and help propel Bitcoin to a bullish surge very soon.
We advise investors to pay attention to Jerome Powell’s comments today at the Federal Reserve meeting. This will likely have a significant impact on the market’s movements this week. There is also a Personal Consumption Expenditure index report to be released this week on Friday. That will indicate where inflation is at, and it may give Bitcoin investors incentive to increase selling pressure or buying pressure.
Recent economic reports have not been very positive, but they have shown that inflation is not rapidly increasing, despite fears that it would be. With the stock market so incredibly high and Bitcoin not far off its all-time high, there is every reason to suspect that Bitcoin will start climbing again soon. The current price point for Bitcoin could become its support level very quickly and serve as a launching pad for a bullish upswing, but much for that movement will depend on what Powell says today and what the PCE report says later in week.
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