Bitcoin Falls Below $113K as Fed Uncertainty Weighs.
Bitcoin dips below $113K amid economic uncertainty, dragging altcoins lower.
FUNDAMENTAL OVERVIEW:
Bitcoin fell sharply on Monday, retreating from last week’s one-month high as investors looked beyond the Federal Reserve’s recent rate cut and awaited clearer signals on the U.S. economic outlook. The cryptocurrency ended largely flat last week, with gains from the Fed’s 25-basis-point cut offset by caution over future easing.
The Fed’s rate reduction initially boosted demand for riskier assets by weakening the dollar and lowering funding costs. However, Chair Jerome Powell’s cautious remarks, emphasizing that further moves will depend on incoming economic data, tempered expectations of an aggressive easing cycle.
Investors now await comments from more than 10 Fed officials this week, including Powell, as well as Friday’s PCE Price Index release, the Fed’s preferred inflation gauge. Most altcoins underperformed Bitcoin, reflecting subdued risk appetite.
BTC/USD TECHNICAL ANALYSIS CHART:
Technical Overview:
BTC/USD is trading within a down channel.
BTC/USD is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Neutral trend.
Immediate Resistance level: 115185
Immediate support level: 110744
HOW TO TRADE BTC/USD
BTC/USD, following a strong rally, is now experiencing a corrective pullback toward a key support area. This retracement seems to be a healthy consolidation rather than a reversal. If the support holds, renewed buying pressure could drive the price higher, potentially leading to fresh highs in the coming sessions.