After the recent euphoria, Bitcoin is experiencing a correction. Little strength currently, but optimism for the future.
a correction that takes us back to levels below USD 70K. I'm not saying this will happen, but it's a possibility we must consider. The market is volatile and sensitive to news.
USD 91-94K
Now, it's time to analyze a crucial level for Bitcoin: the support between USD 91-94K. This is the current support, yes, but we must be cautious: it is a fragile support that has yet to demonstrate its strength. Basically, with the declines of the last two weeks, this is exactly where the bleeding stopped.
But why do I say it’s fragile? Well, unlike other supports that have been tested and bounced back multiple times, this one is relatively new. It has not had enough time to consolidate as a zone of strong demand. Additionally, an external factor has negatively influenced market sentiment: the statements from the Federal Reserve (Fed).
The Fed, by communicating that there will be "only a couple" more rate cuts in the near future, and not the amount the market anticipated, caused a palpable discouragement. This change in expectations deflated the unrestrained enthusiasm of previous weeks, creating downward pressure in the markets, including the cryptocurrency market.
In other words, the support of 91-94K is the last line of defense at this moment. However, its fragility, combined with the Fed's news, forces us to be cautious. If this level is not maintained, we could see more pronounced declines. As always, I recommend thoroughly analyzing, not getting carried away by FOMO or FUD, and doing your own due diligence.
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Conclusion
There are three things we must consider. First, the volume is extremely low, which indicates that conviction is waning. That is to say, while the decline has stopped, there has not been a strong rebound suggesting that this support is solid. Second, the sentiment, although it has dropped, is not yet at extreme fear. This, although it may seem strange, is a relatively optimistic piece of data, though not enough to throw any parties.
Finally, and this is important, let's remember that next year could bring new expectations that push the price above USD 100K. Let's not forget that two of the most powerful men in the world (use your imagination) are clearly "crypto friends" and, moreover, masters of publicity. With a couple of strategic tweets or grand announcements, they could generate renewed enthusiasm and awaken new expectations among Bitcoin investors.