Recently, the Bitcoin market has been like a roller coaster, causing investors' hearts to race. Earlier this week, Bitcoin reached an all-time high of $108,000, but then the market changed drastically, and Bitcoin began a significant adjustment journey.
According to data from Coinmetrics, the trading price of Bitcoin during the European session on Friday was around $92,400, down about 9% from 24 hours ago, and over 5% for the day, retreating nearly 15% from its historical high. In this wave of decline, over 300,000 people worldwide are facing liquidation, highlighting the high volatility of the cryptocurrency market.
This wave of dramatic fluctuation in Bitcoin is closely related to the Federal Reserve's policy shift. The Federal Reserve announced a rate cut on Wednesday but expressed more doubts about future rate-cutting space, and Powell's comments raised concerns that rates might not be lowered again soon. Investors generally adopted a cautious attitude toward risk assets, leading to a decline in speculative assets, including Bitcoin. Meanwhile, a batch of U.S. exchange-traded funds that directly invest in Bitcoin ended a 15-day inflow streak on Thursday, recording an outflow of $680 million, highlighting the shift in market sentiment.
However, despite the sharp adjustments Bitcoin has recently experienced, more long-term investors still maintain a positive attitude, with many optimistic about its future development, believing that this virtual currency may play an increasingly important role in the global financial system. As Paul Veradittakit, managing partner of Pantera Capital, stated: 'All signs indicate that Bitcoin's price has good support, and the future outlook remains optimistic.'
Currently, from the daily chart of Bitcoin, yesterday showed a doji candlestick with a long lower shadow, which often contains a subtle signal of fierce competition between bullish and bearish forces and a potential trend reversal. Currently, Bitcoin's price is rebounding and has touched the pressure level of 9.86 at the daily MA30 moving average. If Bitcoin's price wants to continue to rise, breaking through this pressure level will be crucial. From the 4-hour chart perspective, Bitcoin has shown a continuous rebound trend, but the pressure level above at 99,800 stands like a barrier in front.
The Bitcoin market is filled with uncertainty for future trends after experiencing significant fluctuations recently. Investors need to closely monitor the Federal Reserve's policy direction, changes in market sentiment, and Bitcoin's own technical trends, and make prudent investment decisions.
