Despite the Fed meeting minutes showing an increased rift between rate cuts and hikes on Wednesday, the top digital asset, Bitcoin (BTC), led most of the altcoin in a bearish move. According to the latest crypto market data, Bitcoin closed Wednesday trading at $26.3k, down about 3.3 percent from the day’s opening price, thus reducing hopes of a quick rebound. Moreover, several technical indicators point to further bleeding toward $25k.
Bitcoin Price Analysis
For the second time since the March breakout, Bitcoin price is trading below the 200 weekly Moving Average (MA). At the back of crypto traders’ minds, the weekly death cross between the 50 and 200 MAs is slowly falling into place. As a result, the Bitcoin market is looking at increased volatility between $15.4k and $31k.
According to crypto analyst Nick from Cheeky Crypto, technical analysis shows bears have the upper hand in Bitcoin from the short-term perspective. Notably, Nick pointed out the Elliott Wave theory on the 1 hour Bitcoin chart, where he charged several scenarios. Nevertheless, the bears are likely to push Bitcoin price toward $25k or lower in the coming weeks.
Disregarding the analyst’s smart money theory, as Bitcoin dropped below $26.6k, Nick noted that Bitcoin is likely to rebound toward $27k in a correction wave before continuing with fresh downward momentum.
The Bitcoin market has experienced significant growth both in value and adoption YTD fueled by the high inflation in global markets. Additionally, investors are more confident investing in Bitcoin through self-custody despite the rise in interest rates meant to curb high inflation. Furthermore, the fourth halving is less than a year away, which historically triggers the crypto bull market.