For the first time in eight weeks, the weekly candle for the price of Bitcoin in dollars closed lower.
This is despite the US Federal Reserve indicating that it plans to start reducing interest rates next year, 2024.
This may indicate the strength of the downward correction momentum in the near term.
After all, nothing can rise to infinity. We must witness some correction and decline from profit-taking operations in particular.
Also, with capital heading to altcoins, which have witnessed sky-rocketing increases.
Of course, this was thanks to the momentum created by optimism around the approval of spot Bitcoin ETFs.
But also thanks to some developments and improvements made by various projects.
Such as the Solana network, which brought about a lot of developments in the network in the past crypto winter months.
This helped it enter into many partnerships with many institutions and bodies to use the solutions it provides instead of its competitor, the Ethereum network.
This attracted the attention of investors and gave a strong boost to Solana (SOL), which rose more than 260% in the past 8 weeks.
The near-term outlook remains very positive
Returning to Bitcoin, the question now is to what extent this decline in the price of Bitcoin in terms of dollars will reach. Are we witnessing another week of correction?
Fundamentally, things are very positive at the moment and the future looks bright. Hopes and signals about the approval of spot Bitcoin ETFs are increasing day by day.
Especially with the continued release of news of meetings and discussions between the SEC and the financial institutions that submitted requests to establish these funds.
This is what observers see as a strong indication that the regulatory body is seriously studying these requests. Unlike previous times, the request was rejected without discussion.
The second thing that helps Bitcoin is the macroeconomic conditions in the United States and the beginning of a decline in inflation rates with the stabilization of the economy’s performance (unexpectedly).
This prompted the Federal Reserve Bank to stabilize interest rates and hint at the beginning of reducing them next year.
It is known in financial markets that there is an inverse relationship between the interest rate and the prices of high-risk financial assets like stocks, Bitcoin, and cryptocurrencies in general.
Technical outlook on the price of Bitcoin
Technically, on the chart, we will notice the completion and success of the “double top” reversal technical pattern.
The price of Bitcoin in dollars fell strongly after breaking the neckline at $43,100.
Before returning and testing it again (the rise was after the Federal Reserve Bank statement). Then it didn’t take long for it to fall again.
At the time of writing, the price of Bitcoin (BTC) is trading at $41,120, just above the support level from which it rebounded the previous time at $40,700.
This level, along with the upper border of the ascending price channel, constitutes the first barrier to the decline.
If it can break it, this will open the way for the price to fall towards the second dam.
Which is formed by the support area of $37,860 – $38,260 and the lower border of the ascending price channel.
The other support level is $35,000, but I think the chances of the Bitcoin price falling here are weak this week.
Unless negative developments or news appear. Or also sudden liquidations in the futures market (as happened many times before).
