- Bitcoin faces selling pressure as uncertainty over Federal Reserve policy clouds risk appetite.
- Conflicting chart patterns highlight indecision, with key levels at $96,500 and $87,000 guiding whether momentum turns bullish or triggers deeper weakness.
Bitcoin finds itself under selling pressure on Thursday as we continue to see questions asked of central bank action. And of course, where the Federal Reserve is going to go more than anything else. The interest rate situation in America is one that is very murky. And despite the fact that we got an interest rate cut on Wednesday, the reality is that it's still a market that doesn't really know what to do about the interest rate situation with the Federal Reserve. That being said, this greatly influences risk appetite in the Bitcoin market. And of course, it needs a certain amount of risk appetite to really get moving.
As you can see, this is a market that has quite a bit on the chart going on at the same time. In fact, I have a bearish pennant drawn, but you could take the flagpole out of the pennant and make an ascending triangle. The market could also be looked at through the use of a rising wedge, which is something that Huzefa Hamid brought up during the upcoming “Pairs of Aces” podcast that will be coming up in a few days.
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Key Technical Levels in Focus
With this, I think the consensus between myself and many other analysts is that Bitcoin is in a spot where it needs to prove itself one way or another. The 50-day EMA currently sits right around the $96,500 level. And if we could break above there, that would be a very bullish sign because we would have cleared the rising triangle. However, if we break down below somewhere near the $87,000 level, it probably sends Bitcoin to retest the $80,000 level. If we break down below $80,000, things could get rather ugly.
The big takeaway from Bitcoin at the moment is that you need to be patient and you need to let the market show you where it wants to go. So far, there's been no real conviction. And that in and of itself is a problem. It could be the beginning of a bottoming pattern, but you don't need to be the first person to buy in order to profit. If it breaks to the upside on decent volume and a little bit of momentum, that gives you your next hint that we are going to the upside. If it breaks down below $80,000, it's probably a very bad sign.
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