Bitcoin Drops 4% Despite Fed Rate Cut, Key Weekly Close Crucial
Bitcoin (BTC) has dropped nearly 4% in the past 24 hours, losing its local range low for the first time in a week, following the Federal Reserve's 25-basis-point rate cut. Analysts emphasize the importance of this week's close for Bitcoin's short-term trajectory.
Key Points
- Bitcoin fell below $110,000, reaching a one-week low of $106,700.
- Ted Pillows noted market volatility is expected, with BTC dropping 6%-8% after recent FOMC meetings but hitting new all-time highs before subsequent meetings.
- Pillows warned BTC must reclaim $113,500 soon to prevent a larger pullback.
- Rekt Capital emphasized a weekly close above $114,500 is needed to confirm support and enable potential moves towards $119,000.
Potential Year-End Rally
- Michaël van de Poppe identified $112,000 as a key resistance level; breaking it could lead to testing the $119,000-$120,000 zone.
- Failure to break this level may push the price toward $103,000.
- Daan Crypto Trades highlighted November as historically strong for BTC, with 8 out of 12 Novembers closing positively.
Historically, the end of the year has seen significant market pivots, either bullish or bearish, suggesting potential upcoming volatility for Bitcoin.