Convergence

Reserve

Based

Bitcoin

Captain

Bitcoin&#8216;s (BTC) rise proved short-lived following the release of May&#8217;s Consumer Price Index (CPI) data, showing easing inflation at the core of the U.S. dollar. The largest cryptocurrency fell by over 4% after the U.S. Federal Reserve surprisingly paused the ceaseless interest rate hikes it&#8217;s been implementing since March 2022. With BTC struggling to stay above 25,000 dollars, let&#8217;s examine what&#8217;s next. 
<h2 style="text-align: justify;" id="span-data-contrast-auto-bitcoin-8217-s-decline-despite-pause-in-interest-rate-hikes-span-span-data-ccp-props-201341983-0-335551550-0-335551620-0-335559739-160-335559740-259-span">Bitcoin&#8217;s Decline Despite Pause in Interest Rate Hikes </h2>
At least 76% of economists at Dow Jones anticipated a pause in the Fed&#8217;s long-running interest rate hikes. Most believed this pause would bolster Bitcoin prices and the remainder of the crypto market. However, market analyst John Gilbert at the eToro trading platform suggests the Fed&#8217;s signal of potential future rate hikes has unnerved investors eyeing risky assets like BTC and altcoins. 
This signal indicates that the pause may only be temporary. Gilbert&#8217;s evaluation includes investors generating a positive sentiment by betting on declining inflation and peaking, then decreasing interest rates. The market analyst comments, &#8220;Inflation is heading in the right direction, but Fed Chairman Jerome Powell&#8217;s statements suggest interest rates might remain high for longer, which will make Bitcoin step back.&#8221; 
<h2 style="text-align: justify;" id="span-data-contrast-auto-bitcoin-bulls-desperately-seek-support-span-span-data-ccp-props-201341983-0-335551550-0-335551620-0-335559739-160-335559740-259-span">Bitcoin Bulls Desperately Seek Support </h2>
Bitcoin price ignited a substantial red candle on the four-hour chart following the Fed-induced sales. Buyers, or &#8216;bulls,&#8217; lost control over the price with the breaking of temporary support levels of 25,400 and 25,000 dollars, and the leading cryptocurrency retreated to 24,902 dollars. 
<img decoding="async" loading="lazy" class="aligncenter wp-image-84668 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/06/btc-25.png" alt="" width="1390" height="730" srcset="https://en.coin-turk.com/wp-content/uploads/2023/06/btc-25.png 1390w, https://en.coin-turk.com/wp-content/uploads/2023/06/btc-25-300x158.png 300w, https://en.coin-turk.com/wp-content/uploads/2023/06/btc-25-768x403.png 768w, https://en.coin-turk.com/wp-content/uploads/2023/06/btc-25-1200x630.png 1200w" sizes="(max-width: 1390px) 100vw, 1390px" />
Based on the Moving Average Convergence Divergence (MACD) indicator&#8217;s appearance on the price chart, this decline might continue until the weekend. However, there&#8217;s also the possibility of bulls defending the support around 25,000 dollars and halting the fall. The On Balance Volume (OBV) indicator in the price chart reflects that sellers, or &#8216;bears,&#8217; currently dominate bulls. This indicator signifies significantly higher money outflows than inflows in the Bitcoin market currently, which puts the bulls at a disadvantage. This situation combined with the sell signal from the MACD suggests that Bitcoin price is far from finding reliable support. 
<img decoding="async" loading="lazy" class="aligncenter wp-image-84667 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/06/bitcoin-11.png" alt="" width="1118" height="1338" srcset="https://en.coin-turk.com/wp-content/uploads/2023/06/bitcoin-11.png 1118w, https://en.coin-turk.com/wp-content/uploads/2023/06/bitcoin-11-142x170.png 142w, https://en.coin-turk.com/wp-content/uploads/2023/06/bitcoin-11-768x919.png 768w, https://en.coin-turk.com/wp-content/uploads/2023/06/bitcoin-11-1003x1200.png 1003w" sizes="(max-width: 1118px) 100vw, 1118px" />
On the other hand, crypto analysts like Captain Faibik suggest that Bitcoin&#8217;s price drop below 25,000 dollars might be a bear trap. If such a scenario unfolds as the analyst claims, the drop below 25,000 dollars aims to cause panic, and investors can expect the ascent to restart after the fresh liquidity is swept. According to Captain Faibik, a recovery from Bitcoin&#8216;s current trading levels could surpass the resistance of 26,700 dollars and potentially rise to 30,000 dollars. However, the analyst also warns against disregarding the possibility of bears going on the offensive, pointing out a potential drop to between 20,000 and 22,000 dollars. 
The post <a rel="nofollow" href="https://en.coin-turk.com/bitcoin-faces-downfall-despite-feds-pause-on-interest-hikes-whats-next/" data-wpel-link="internal">Bitcoin Faces Downfall Despite Fed&#8217;s Pause on Interest Hikes: What&#8217;s Next?</a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Bitcoin Faces Downfall Despite Fed’s Pause on Interest Hikes: What’s Next?

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