Bitcoin dropped under $75,000 after FOMC minutes showed the US Federal Reserve holding interest rates and expressing slight concerns over inflation and the war in Iran. ” FOMC minutes with new statements in red. Source: CNBC The Fed’s hold on rates aligned with market expectations, but Bitcoin remained fragile throughout Chairman Powell’s presser.
” Adding data to back his market view, Varma said, BTC/USDT global bid ask ratio. Source: Hyblock After the FOMC minutes were published, BTC dropped to an intra-day low of $74,937, slightly below the 20-day simple moving average ($75,664) that some traders identified as critical to confirming BTC’s support-resistance flip. As reported on Monday by Cointelegraph, following the break above the channel resistance on the daily chart, BTC required consecutive daily candle closes above the trendline, followed by a lower support restest in the $76,500 to $75,500 range.
BTC/USDT 1-day chart. Source: TradingView While all the above have happened, failure to recapture the 20-MA and close above the trendline resistance could be interpreted as a loss of momentum within the bull trend, opening the path for Bitcoin to test the downside boundary of the near-4-month-old channel. Related: Bitcoin falls as traders cut risk ahead of FOMC: Will Tradfi, spot ETF volumes bolster $70K support?
Prior to the Chairman Powell’s presser, Glassnode analysts noticed that Bitcoin traders were adding bearish leverage, citing rising open interest after Tuesday’s rally to $79,000, funding remaining neutral and a divergence between the spot and futures market cumulative volume delta (CVD). Bitcoin traders turn bearish ahead of FOMC minutes. Source: Glassnode / X Additional analysis from Glassnode’s The Week Onchain report depicted Bitcoin’s price action as “trapped below market mean," where $65,000 to $70,000 act as support, but weak demand prevents the formation of sustainable rallies.
According to the report, Bitcoin failed to overcome its True Market Mean at $79,000 and a surge in short-term holders' profit taking, along with margin futures flipping net short, has sapped away Bitcoin’s shorter-term bullish momentum. BTC entity-adjusted short-term holder realized profit. ” CME open interest, US spot ETF AUM position change.
