Bitcoin

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/bitcoin-price-decline-signals-key-technical-indicator-activation/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin Price Decline Signals Key Technical Indicator Activation</a> 
Following the Federal Reserve’s (Fed) interest rate cut, Bitcoin (BTC) experienced a price decline that activated a critical indicator historically marking the end of price corrections.
<h2 id="fed-s-rate-cut-and-expectations">Fed’s Rate Cut and Expectations</h2>
On Wednesday, the Fed reduced the benchmark borrowing cost as anticipated. However, it announced plans for only two rate cuts instead of the four expected in September for 2025.
<blockquote>
 The central bank emphasized its reluctance to participate in potential government plans for strategic BTC reserves.
</blockquote>
<h2 id="bitcoin-s-market-performance">Bitcoin’s Market Performance</h2>
In response to this decision, BTC fell over 8%, dropping to around $96,000 at one point. At the time of writing, the <a href="https://en.coin-turk.com/insights-on-the-current-crypto-market-and-the-potential-of-a-spot-bitcoin-etf/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrency</a> was trading at approximately $97,500, reflecting nearly a 10% decline from the record high of $108,266 reached earlier this week.
These losses caused the 50-hour simple moving average (SMA) to drop below the 200-hour SMA, confirming a bearish crossover. This pattern indicates that the ongoing correction could deepen; however, this model did not function as expected during the last bull market.
Bitcoin experienced multiple corrections during its rally from $70,000 to over $100,000 after the U.S. elections, with each decline ending with a bearish crossover of the 50 and 200-hour SMAs.
Thus, the latest crossover could be encouraging for bulls hoping for a resumption of six-figure movements above $100,000.
A potential recovery may encounter resistance around $10,600, defined by a declining trend line representing the recent price drop. Breaking this level could open the doors for new record highs.
However, it is essential to remember that models do not always act as expected, and the opposing indicators mentioned may fail. The first sign of trouble would be if prices fall below the overnight low of $96,000, potentially setting the stage for a level near $91,000 recorded on December 5th.
As Bitcoin traders continue to monitor technical indicators and market trends, they are advised to maintain a cautious approach against market fluctuations.
<ul>
 <li>Fed’s interest rate cut led to a 10% decline in BTC.</li>
 <li>Technical indicators suggest the downtrend may continue.</li>
 <li>Potential recovery may face resistance around $10,600.</li>
</ul>
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Bitcoin Price Decline Signals Key Technical Indicator Activation

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