BITCOIN: ARE NEW INVESTORS GIVING UP?
Yesterday, the Fed decided not to lower interest rates. This was not a surprise for traders, and the BTC price reacted positively, rising back above $87,000. BTC is up 3% in 24 hours.
Despite this reaction, the price is still down 10.5% over the month and nearly 12% over three months. Meanwhile, the BTC/ETH pair is stagnant over 24 hours but has dropped 4.3% in a week. ETH has managed to rise back above $2,000, but will the increase last?
If you follow cryptocurrencies, you know that BTC and altcoins are in a correction phase. BTC has fallen 30% since the peak, and ETH has plummeted nearly 60%. The drop in BTC has hurt investors, especially short-term holders.
Traders who acquired their BTC in less than 155 days are facing significant losses. This level of loss far exceeds those of 2024 and suggests a capitulation. However, the realized losses are lower than those during the events of 2021 and 2022.
The trend has been bearish since the peak around $110,000, but the price has been rebounding since the buying reaction around the support at 76,500 $ :
If the rebound continues, the price could face resistance at $89,000. If it breaks, BTC could return to the resistance level of $92,000. Conversely, in case of weakening, a return to 76,500 $ is not impossible. Meanwhile, the RSI could validate a bullish divergence in the coming hours. A slowdown on the sellers' side would be recorded if developments exceed 74.
New investors are showing notable losses that could correspond to a capitulation. The price of Bitcoin is bouncing back, but it will need to break the resistance at 89,000 $ to hope to reach the psychological round figure of $90,000.