Bitcoin, the world’s largest cryptocurrency, has taken a significant hit, falling below the $25,000 mark. This decline comes as digital assets face an aggressive crackdown by US regulators and hawkish signals from the Federal Reserve, leaving investors reeling.
Early today, Bitcoin experienced a sharp drop, plummeting to $24,897, representing a 4% decrease from its previous value of $25,930 on June 14th. The sudden slump followed closely on the heels of the Federal Reserve’s decision to maintain interest rates at their current level during a two-day policy meeting.
However, Chairman Jerome Powell’s remarks, characterized by what analysts refer to as a “hawkish pause,” sent shockwaves through the market. Traders had anticipated that the Fed might signal an end to its rate-hike campaign.
But instead, the central bank’s dot-plot projections hinted at the possibility of further interest rate increases later this year. This development further fueled concerns about inflation and its implications for the financial landscape.
Bitcoin (BTC) Price Prediction
Bitcoin has been trapped in a notable bearish trend over the past week. As the cryptocurrency market faced headwinds, the largest crypto asset by market capitalization suffered a decline of over 5% in the last seven days alone.
According to the latest data from CoinMarketCap, Bitcoin is currently trading at $25,369.87, demonstrating a modest gain of almost 2% in the daily chart. Analysts and traders are closely monitoring key levels and indicators to assess the potential trajectory of Bitcoin’s price in the near term.
At present, the first major resistance lies near the $25,500 level, which coincides with the 50% Fibonacci retracement level of the recent decline from the swing high of $26,063 to the low of $24,818.
A decisive breakthrough above this resistance level could ignite a fresh upward movement, instilling renewed confidence among market participants.
Conversely, if Bitcoin fails to surpass the $25,500 resistance, it may continue its downward trajectory. Immediate Support awaits near the $24,800 level, along with the recently established low.
However, a breach of this support level could pave the way for further bearish momentum, with the next major support resting around $24,500. In a worst-case scenario, the price could potentially plummet toward the $24,000 support level in the near future, exacerbating concerns among investors.
Nonetheless, the market is currently brimming with anticipation and uncertainty as participants carefully analyze regulatory developments, the Federal Reserve’s monetary policy stance, and technical indicators to gauge the direction in which Bitcoin’s price might ultimately head.
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