Bitcoin’s price is on a precarious edge, with analysts warning of a potential further plunge if it fails to reclaim a critical level. Currently hovering around $60,000, Bitcoin faces the risk of dropping even lower if it doesn’t surge past $70,300 soon. An analyst on X has sounded the alarm, indicating that a failure to break above $70,300 could lead to a significant downturn, possibly plummeting to the $59,000 to $62,000 support range.
This would mark a 20% decline from its recent all-time high of $73,800.The analyst points to a concerning bearish divergence formation in Bitcoin’s daily chart, signaling a disconnect between price and momentum. With bears exerting dominance, the likelihood of further downward pressure intensifies.
In order to improve the current situation, it is imperative for bullish investors to swiftly achieve a strong closing price above the $70,300 threshold. This strategic action holds the potential to mitigate the current downward pressure on Bitcoin’s value, effectively arresting the ongoing sell-off, and restoring Bitcoin’s trajectory to align with its recent upward trend.
Bitcoin’s Response To FOMC Meeting Anticipation
Multiple fundamental factors are at play, including anticipation surrounding the Federal Open Market Committee (FOMC) meeting in the United States. The recent decision by the Bank of Japan (BoJ) to raise interest rates for the first time in over a decade has added to market volatility, underlining the fragility of global financial conditions.
Moreover, significant outflows from Grayscale, coupled with diminishing capital influx into spot BTC exchange-traded funds (ETFs), are further dampening sentiment. Grayscale’s Bitcoin Trust (GBTC) winding down and the subsequent release of more coins than purchased by spot BTC ETF issuers signal a bearish trend in the market.
Despite these challenges, the broader crypto market sentiment remains bullish, buoyed by anticipation surrounding the upcoming halving event. However, Bitcoin’s immediate fate hangs in the balance as it teeters on the edge of a potential further decline.
As investors brace for volatility, all eyes are on Bitcoin’s ability to reclaim key levels and the outcome of the impending FOMC meeting. Whether BTC will weather the storm or succumb to further downward pressure remains to be seen, but the stakes have never been higher for the world’s leading cryptocurrency.