The recent drop in Bitcoin prices has been attributed to several macroeconomic factors, including the Federal Reserve's interest rate decision. This article examines the reasons for the decline, the current market situation, and future expectations.
Factors Behind Bitcoin's Drop
On July 30, the Federal Reserve announced its decision to hold interest rates steady. This created negative pressure on risk assets, including Bitcoin, which had previously been hovering around the $123K resistance level. The result was a cascade of selling that led to a sharp price decline.
Bitcoin Chart Analysis
The BTC/USD chart reveals several key points:
* Failed breakout at $123K, followed by range-bound movement between $116K–$118K. * Clean breakdown below $116K, which has now become a resistance level. * Bearish cross of moving averages indicating a bearish trend. * RSI at 29.34 indicates an oversold condition, but without bullish divergence.
Predictions and Expectations
Immediate support is expected in the $111K–$112K range. A break below this level could lead Bitcoin to drop toward $108K or even $104K in the short term. A potential relief bounce may occur, but it must reclaim $116K to flip the structure. Furthermore, attention should be paid to trading volumes; high sell volume near $111K may signal further downward movement. Macro events, such as further Fed commentary or inflation data, could inject new volatility.
The decline in Bitcoin prices is a result of a combination of economic factors and the overall market situation. Future actions and statements from the Federal Reserve could significantly impact the subsequent developments in the cryptocurrency market.
