Bitcoin Crash Analysis ($BTC )
Recent Performance
• Cumulative decline: 8% on Wednesday and Thursday.
• Current price: $95,000 (Friday).
• Possible future decline: Initial target of $89,400 and potentially $73,000.
Factors in the Decline
1. Fed Decision
• Jerome Powell announced a 25 basis point Fed rate cut.
• Indicated only two interest rate adjustments in 2025.
• Additional promises could accelerate markets and increase inflation.
2. Federal Reserve Forecasts
• Most members project rate hikes, but the Fed's track record of getting it right is limited.
3. Spot Bitcoin ETF Outflows
• Record outflow: 6.71K BTC on Thursday.
• Ended a 15-day streak of positive net inflow.
Technical Analysis
Short-Term
• Ascending Channel:
• Bitcoin broke out of the pattern, reaching the 0.786 Fibonacci level at $95,000.
• Next target: $89,400.
Long-Term
• Downside scenario:
• If it breaks $89,400, it could reach $73,000.
• Significant support level at $73,000 to limit further declines.
Indicators
• Stochastic RSI:
• Indicates that momentum is nearing a bottom.
• Possible upside movement soon, but trend direction still uncertain.
Summary
Bitcoin is facing a turning point. While an upside move could occur soon, it is unclear whether it will sustain the uptrend or confirm a bearish reversal.
Disclaimer: This content is for informational purposes only and does not constitute financial or investment advice.
