Bitcoin ($BTC) is having a minor correction today, as its price hovers around $102,631.43 with a 0.31% decline in the last 24 hours. Its trading volume declined by 36.22% to $42.28 billion, which further indicates reduced market activity.
Earlier, Bitcoin briefly dipped to $100,265.7, reflecting growing investor caution ahead of key macroeconomic events.
The crypto market is holding on because all eyes are on Federal Reserve Chair Jerome Powell for his impending remarks. Though rates are still expected to remain in the 4.25%-4.50% range with the FOMC meeting, Powell's comments and guidance may very well determine Bitcoin's short-term direction.
Apart from the crash last year, the decline comes along with considerable uncertainties-this is not just about an immediate rate hike. The Fed's viewpoints about inflation and future monetary stance will be mostly decisive. Should Powell take on a more hawkish stance and delay the expected rate cuts, there could be further selling pressure on Bitcoin and risk assets.
In a bid to build suspense in the market, Aleš Michl, Governor of the Czech National Bank (CNB), is expected to branch out now and invest up to 5% of its reserves of €140 billion ($146 billion) into Bitcoin, Financial Times reported. If the vote passes, it shall, indeed, mark an unprecedented moment that a central bank ever officially held Bitcoin, thus marking a historic milestone for institutional adoption.
Analyst Ali Martinez highlighted that investors are pulling out funds ahead of the FOMC meeting, as Bitcoin ETFs have recently offloaded nearly 8,000 BTC—worth approximately $800 million. Market participants remain cautious, anticipating U.S. Fed Chairman Jerome Powell's speech later today.
According to Ali Martinez, the TD Sequential indicator is suggesting a potential sell signal on the hourly chart for Bitcoin ($BTC), which could lead the price to revisit recent lows around $99,000. However, a rebound may follow, supported by a dovish stance from the Fed in tomorrow's announcement.
Ali also mentioned that Bitcoin ($BTC) faced rejection at the upper red pricing band of $109,400. If it fails to recover this level, attention will shift to the next crucial support at the orange MVRV pricing band, which is currently positioned at $91,700.
If BTC breaks above the descending trendline resistance, confirming a breakout, the next target will be $107,000. A strong 4-hour candle close above this level could pave the way for the current all-time high of $110K as the key resistance.
Today reflects a mix of macroeconomic uncertainty and cautious investor sentiment. Powell’s remarks could dictate short-term volatility, while potential central bank adoption—such as the Czech National Bank’s Bitcoin plan—adds an interesting long-term bullish angle. The crypto market remains at a critical juncture, awaiting clarity on monetary policy and institutional adoption trends.
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