Bitcoin Price Dips 6% Ahead of Fed Meeting
Bitcoin (BTC) experienced a sharp 6% drop in the past 24 hours, falling below the crucial $99,000 support level. This decline follows bearish predictions in the U.S. equities market, triggered by the emergence of China's DeepSeek LLM model.
Market Factors Driving Bitcoin's Decline
- U.S. Equities Market Dip: The Nasdaq 100 futures were down 2.9%, signaling potential losses of $1 trillion in the U.S. equity market.
- De-risking Ahead of FOMC Meeting: The market may be de-risking ahead of the Federal Open Market Committee (FOMC) meeting later this week, impacting both traditional and crypto markets.
While the recent losses may seem indicative of inherent Bitcoin weakness, analysis suggests otherwise. Trading volume remained relatively muted, suggesting the drop is primarily driven by external market factors rather than an internal Bitcoin issue.
Bitcoin Price Prediction: Potential for Further Correction
Over the past two months, Bitcoin traded within a range of $92,000 to $106,000. The current breach of the mid-range support at $99,000 increases the likelihood of a deeper correction towards $92,000. However, this is a short-term prediction and the situation could change rapidly. The New York trading session could be a key indicator.
Technical indicators such as the MACD on the daily chart show a bearish crossover, indicating weakening bullish momentum. Conversely, the Accumulation/Distribution (A/D) indicator suggests that selling pressure is largely a reaction to external market anxieties rather than underlying Bitcoin weakness.
Data from Coinalyze reveals a strong bearish sentiment in recent hours, with a negative funding rate and increased open interest as prices fell below $102,000. This suggests increased short-selling and bearish sentiment within the derivatives market. However, analyst Axel Adler has noted that panic selling does not appear to be widespread, based on analysis of short-term holder activity.
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Disclaimer: This information is for educational purposes only and should not be considered financial or investment advice.