In anticipation of the US Fed meeting tonight, where Jerome Powell is expected to outline the timing and frequency of upcoming rate cuts, the cryptocurrency market experienced a downturn on Wednesday. Bitcoin and Ethereum were at the forefront of this retreat.
At press time, Bitcoin (BTC) experienced a slight decrease of 0.37%, trading at $66,121, while Ethereum dropped by nearly 0.54% to $3,320. The global cryptocurrency market cap fell by 0.67% to approximately $2.39 trillion in the past 24 hours. Additionally, the total crypto market volume shrank significantly by 18.40% to $62.74 billion during the same period.
Key Levels Threaten Bitcoin’s Bull Run
Bitcoin’s recent push towards the $70,000 threshold has lost momentum, dampening short-term bullish sentiment. Although it closed above the 20-day and 100-day Simple Moving Averages (SMAs), Bitcoin has shown signs of a potential reversal. The emergence of a black crow pattern, often linked to bearish outlooks, adds to the uncertainty.
Per TradingView’s data, Bitcoin faced significant resistance at the $70,015 mark. This led to a potential double top formation and a bearish divergence on the Relative Strength Index (RSI), which hints at a possible shift in momentum.
Additionally, the Relative Strength Index (RSI) trending below the signal line at 55.35 reinforces the bearish outlook, suggesting the market could enter a consolidation phase before any potential recovery.
What’s Next for BTC?
Since July 5, when BTC traded at its lowest price in Q3, the token has been creating higher highs and higher lows, thus making a bullish formation over the last month. However, recent selling has made analysts conclude that BTC could bounce back to its 100-day SMA of $64.5K if the bearish impression lingers in the short term.
This support could help maintain its pattern of higher lows and potentially drive BTC to recover previous losses, potentially targeting $68.9K along the 78.1 Fib level.
However, if the 100-day SMA fails to hold and BTC drops below its recent low of $63.4K, it could indicate a negative shift. This shift might push BTC towards $62.8K around the 50% Fib level, possibly reaching the $60K mark, which has been solid over the past four months.
Long-Term Holders Show Signs of Optimism
On the other hand, a Glassnode chart shows a significant change in the net position of long-term Bitcoin holders. As of July 29, 2024, long-term holders increased their positions by 110,666.86 BTC, priced at $66,805.99.
Long-term #Bitcoin holders are on a buying spree, adding over 110,000 $BTC to their portfolios! pic.twitter.com/cETvODhTbt
— Ali (@ali_charts) July 30, 2024
This positive net position change reverses the extensive selling observed earlier in the year, indicating renewed confidence among long-term investors despite the recent market downturn.
Also Read: BlackRock’s Ethereum ETF, ETHA, enters the top 15 ETFs
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