Bitcoin recently hit a new all-time high of $108,268 before experiencing a 17% decline, bringing its price down to $92,281. This significant drop has been linked to the US Federal Reserve’s decision to cut interest rates by 25 basis points at its latest FOMC meeting. While interest rate cuts are typically seen as bullish for the crypto market, the Fed also announced plans to reduce its projected rate cuts for 2025 from four to two, causing investors to offload risky assets.
Despite the recent price decline, popular crypto market expert Burak Kesmeci believes that Bitcoin is still far from entering a bear market and has not yet reached the bull cycle top. Analyzing Bitcoin’s performance using simple moving averages, Kesmeci notes that the premier cryptocurrency has dipped below its SMA21 but remains above the SMA50, which has a significant influence on short-term price momentum. He also points out that Bitcoin has been on an upward trend since early October, rising from $60,200 to over $108,000.
Kesmeci highlights that Bitcoin’s distance from its SMA200 and SMA365 suggests that its bullish structure remains intact, as the bottom of a long-term trend is typically determined when the price breaks below these moving averages. Despite the recent price fall, Kesmeci reassures investors that corrections of 20% to 30% are normal during a bull run based on historical data. Overall, he believes there is nothing to fear regarding Bitcoin’s future performance.
Currently, Bitcoin is trading at $97,354 with a daily trading volume of $103.92 billion, following a mild recovery from its previous decline. The ongoing price fluctuations and market volatility indicate ongoing uncertainty surrounding Bitcoin’s future trajectory. It remains to be seen how the asset will perform in the coming days and weeks, especially in light of the recent policy changes from the US Federal Reserve.
In conclusion, while Bitcoin has experienced a significant price decline following the US Federal Reserve’s policy announcement, analysts like Burak Kesmeci remain optimistic about the asset’s long-term outlook. Despite the recent market turbulence, Bitcoin’s bullish structure appears to remain intact, signaling potential for further price appreciation. Investors should monitor Bitcoin’s performance closely in the coming days to determine if the current uptrend will continue or if further corrections are to be expected.
