Bitcoin, the leading cryptocurrency, fell to its lowest level in two weeks, around $62,000, amid fears that the Federal Reserve, under its new chairman Kevin Warsh, will adopt a more hawkish policy.
At this point, the market is focused on whether $BTC can hold the $60,000 support level, and an updated analysis has come from Bitfinex analysts.
Bitfinex analysts stated in their latest Bitfinex Alpha report that the current cryptocurrency market environment is being reshaped by changing Fed expectations and inflation risks. According to the analysts, these factors have created short-term pressure on risky assets such as gold and $BTC. However, despite this, $BTC’s base level has remained solid.
According to Bitfinex analysts, on-chain data indicates that neither buyers nor sellers have firm control over the market. It also suggests the market is in a period of uncertainty rather than a sustained downturn.
In this context, $BTC is struggling to find direction and is stuck between $60,000 and $72,000. Bitcoin is trading sideways due to the lack of necessary catalysts for an uptrend.
The report also noted that conditions such as spot ETF inflows and a shift to negative funding rates are necessary for a short-term uptrend, but have not yet materialized.
Finally, Bitfinex added that for Bitcoin to maintain its support levels, the Fed needs to continue its stance against inflation.
According to analysts, structurally, Bitcoin is trading below the average purchase price of active investors, and the $68,500 to $72,000 range is playing a critical role in breaking the selling pressure.
According to Bitfinex analysts, Bitcoin will continue to fluctuate between $60,000 and $70,000, and potentially move within a narrower range such as $62,000 to $64,000.
The key levels to watch are the $54,000 support line and the $72,000 and $77,200 resistance levels.
*This is not investment advice.
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