What's up, crew! Bitcoin, which had already touched the sky with its record of over $124,000, pulled back. The reason? The market got nervous, but just when it seemed a tougher correction was coming, the Federal Reserve dropped a bombshell that saved it: they might cut interest rates! This was like a shot of energy for Bitcoin, which rebounded strongly and is now in a crucial fight.
In the daily chart, BTC had broken its upward channel, and that is a warning sign, but with the spark from the FED, it managed to rebound in the $110,000 area. Be careful, as that area is vital because it also coincides with a key indicator called the 100-day moving average. Although the market is indecisive, if the rebound continues, it could seek the $130,000 area or more again. If not, it could return to the $100,000 area, which would be a hard hit but not lethal. 📉
Now, in the 4-hour chart, things are even hotter. BTC touched $112,000, rebounded strongly, and is now facing heavy resistance at $117,000. If it can't break through, it could fall back to $112,000 or even lower. A strong downward break at this point could unleash a domino effect of sales, pushing the price directly to $100,000, the magic number that everyone is watching.
And what about the on-chain analysis? Futures traders remain optimistic. The 'funding rates' are still positive, meaning people are still betting that the price will rise. Although there have been small liquidations, the overall sentiment remains 'to the moon!'. This is key because, unlike other peaks, the market is not yet 'overheated', leaving room for the price to continue rising. However, in such a positive market, an unexpected drop could trigger a cascade of sales that no one saw coming. Hold on to your seats! 💥
Bitcoin is at a crossroads, and what happens with the FED and these levels of resistance and support will define its immediate future. Do you think it can break the barrier, or is a tougher correction coming?
