BTC drops to $65,000, but experts say "the correction is over"
Bitcoin (BTC) prices fell slightly on Thursday as the USD strengthened, losing some of the momentum from Wednesday's spectacular boost fueled by the US Federal Reserve's (FED) positive stance.
🔶 BTC price fell about 5% to a low of $64,600 in late afternoon UTC from above $68,000 earlier in the day.
The CoinDesk 20 Index (CD20) is down 3.5% from its intraday high, with altcoins generally outperforming Bitcoin on the day.
🔶The token of the Ripple payment network (XRP), along with the token of the decentralized data storage platform Filecoin (FIL) and the token of Internet Computer (ICP) increased by 6% - 7% in the past 24 hours.
🔶During the same period, tokens of Layer 1 networks Solana (SOL), Avalanche (AVAX) and Aptos (APT) decreased by 2%-3%.
Reasons why Bitcoin price decreased:
🔶The USD recovered after the Swiss Central Bank unexpectedly cut interest rates by 25 basis points, completely erasing Wednesday's sharp decline when Fed Chairman Jerome Powell took a positive stance despite data. whether inflation is higher than expected.
🔶The US Dollar Index (DXY) measures the strength of the USD against other major currencies. A stronger DXY usually affects asset prices.
🔶 Macro analyst Michael Kao said on social media that this move is probably due to the market predicting that some other key central banks may start cutting interest rates before the Fed.
Analysts' predictions:
🔶Market analysis firm Swissblock believes that Bitcoin completed its correction before recovering sharply on Wednesday, falling close to its target price for the correction of $58,000 - $59,000.
🔶Trader Jelle notes that the bottom of the correction is confirmed until BTC holds the $65,000 mark. He added that prices could move sideways for a while at current levels and need to break above $69,000 - the market cycle peak in 2021 - to reactivate momentum to higher prices.
Source: Tradecoinvn.com
