empty
25.05.2023 10:40 AM
Bitcoin updates local low amid Fed statements

Over the past one and a half weeks, Bitcoin has been trading within the range of $26.6k to $27.5k, where large order blocks were concentrated. Due to the decrease in trading activity in the crypto market and the improved situation in the stock market, the price of BTC failed to break out of this range.

This image is no longer relevant

At the same time, bearish sentiments prevailed in the market, but they were not sufficient to break out of the volatility corridor. The period of calm was replaced by mild panic in the market after the speeches of the Federal Reserve System members and the announcement of the agency's future plans.

Fed intensifies bearish trend in the BTC market

The statements made by Fed officials can hardly be called positive. Officials noted that they see "uncertainty" in the future of the key interest rate and expressed the general opinion that the indicator may be raised again in the future. Members of the agency also stated that it would be wrong to give investors hope for a rate cut in 2023.

This image is no longer relevant

These Fed statements significantly worsened market expectations since, prior to the public speeches, over 75% of investors were confident in a rate cut already in the summer or fall of 2023. According to FT, market players significantly revised their rate forecasts for 2023 after the officials' statements.

This image is no longer relevant

Adding fuel to the fire, the CEO of Goldman Sachs stated that inflation in the U.S. would be more sustained than forecasted. The banker is also confident that the Federal Reserve will have to raise the key interest rate even higher to reach the 2% baseline. Parallel to these statements, there is a significant reduction in global liquidity.

Bitcoin performs a dangerous bearish reversal

The discouraging statements by the Federal Reserve sparked a surge in volatility in the crypto market, which culminated in a long-awaited breakthrough of the $26.6k level. Bitcoin finally made a bearish breakthrough of the key bullish position and settled below it. This gives the bears the opportunity to push the price down to a low of $25k.

This image is no longer relevant

By the end of yesterday's trading day, the bulls failed to regain the initiative from the bears and push the price back above $27k. Furthermore, the Fed statements worsened the situation, and BTC formed a "bearish engulfing" pattern. The new trading day for Bitcoin also started with a decline, and at one point, the price retested the $25.5k level.

This image is no longer relevant

Buyers managed to defend the threshold and push the price back above $26k. However, there are strong indications that the decline will continue. Technical metrics on the 1D timeframe indicate a sustained downward trend. The stochastic oscillator shows a bearish crossover, and the RSI is moving below the 40 mark.

This image is no longer relevant

Considering the bearish sentiments in the crypto market and the global economy, as well as the minimal horizontal volumes in the $25k–$26.5k range, further downward movement of the cryptocurrency should be expected. The new targets for sellers are now considered to be in the $24.6k–$25k range. If this range is breached, the structure of the BTC upward trend will collapse, opening the way to $23k.

Conclusion

Bitcoin once again demonstrated a high level of dependence on the actions of the Fed. The situation is further complicated by the rapid decline in BTC's market capitalization, which will lead to an increase in bearish sentiments. As we know, the market always goes against the crowd, so it is quite possible that a strong upward impulse awaits us near $25k, especially considering the fact that "whales" have resumed accumulating stablecoins.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Crypto market resilient despite dollar volatility

BTC/USD is rising again today after yesterday's dip, overall maintaining its bullish momentum. Fundamentally, conditions continue to support BTC/USD growth in the medium term. The global economic and market landscape

Jurij Tolin 14:14 2025-07-08 UTC+2

Japan's digital bank by Metaplanet

While Bitcoin stubbornly refuses to decline, fueled by massive demand from ETF funds, the Japanese firm Metaplanet is planning to use its Bitcoin reserves to create the first digital bank

Jakub Novak 13:46 2025-07-08 UTC+2

Trading tips for crypto market on July 8

Both Bitcoin and Ethereum remain on a sound footing, poised to continue a bullish trend. As long as BTC continues trading above the $105,000 mark, the odds of further growth

Miroslaw Bawulski 12:16 2025-07-08 UTC+2

Clarity act on digital asset market gains support

Bitcoin and Ethereum have returned to the channels in which they spent most of last week. While Bitcoin has yet to break above the $109,000 mark, the prospects

Jakub Novak 11:00 2025-07-08 UTC+2

Elon Musk's America party advocates for Bitcoin and digital assets

The recently formed political party, America Party led by Elon Musk, will support Bitcoin. This was announced by the Tesla CEO himself on social media. "Fiat is hopeless

Jakub Novak 15:31 2025-07-07 UTC+2

Bitcoin will test its Support.1 after successfully breaking through and closing below the Uptrendline intraday chart, Friday, July 4, 2024.

Bitcoin – Friday, July 4, 2025. With an inflow into the Bitcoin ETF around USD$ 50 billion, it shows strong interest from investors, thus strengthening the legitimacy of this cryptocurrency

Arief Makmur 07:58 2025-07-04 UTC+2

Ripple has the potential to correct and weaken down to the Support level of 2.1924, Friday, July 4, 2025.

Ripple – Friday, July 4, 2025 Friendly regulatory pressure and the case with the SEC that seems to be stopped and open interest in the derivatives market that has jumped

Arief Makmur 07:58 2025-07-04 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 4

Bitcoin has encountered significant resistance around $110,000, and it is unlikely to break through this level easily in the near term. Ethereum is also facing difficulties moving above the $2,600

Miroslaw Bawulski 07:27 2025-07-04 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 3

Bitcoin and Ether have resumed growth, reaching new weekly highs amid favorable macroeconomic conditions. Over the past 24 hours, Bitcoin has risen by 2.5%, trading above $109,000. Ethereum also advanced

Miroslaw Bawulski 08:47 2025-07-03 UTC+2

Trading Recommendations for the Cryptocurrency Market on July 2

Bitcoin continued its correction and during today's Asian trading session reached a new level of $105,000. Ethereum also dropped significantly but was quickly bought back, stabilizing around $2,425. Meanwhile

Miroslaw Bawulski 08:33 2025-07-02 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.