Analyst Says "Bitcoin and Ethereum Are Cornered!", Shares Risky Levels That Must Be Protected!
Leading cryptocurrency Bitcoin (BTC) had recovered to near $114,000 yesterday after Monday’s crash. However, after a brief recovery, it retreated on Thursday as investors awaited key U.S. economic data that could shape the Federal Reserve’s interest rate decisions.
But Wall Street investors are buying the dip in anticipation of a historically bullish fourth quarter, as spot Bitcoin ETFs saw $241 million in inflows today.
At this point, while the uncertainty in the market continues, it also continues to digest FED Chair Jerome Powell’s message on Tuesday that they will not rush into further easing.
Powell characterized last week’s 25 basis point rate cut as a “risk management” measure aimed at easing the cooling labor market. He also stated that there was no pressure for a 50 basis point cut.
Powell also reiterated that the Fed must balance upside inflation risks with downside employment risks, and stated that the Fed will be patient rather than resort to a rapid rate-cutting cycle.
In light of Powell’s comments and the ongoing uncertainty, one analyst described the cryptocurrency market as a “market of maybes.”
Speaking to The Block, BRN research president Timothy Misir stated that there is currently no clarity in the market and that predictions are based on maybes.
At this point, Misir noted that Bitcoin has formed a double bottom around $111,115, while it is facing solid resistance around $113,500.
Stating that a decisive breakout of this resistance level would push the BTC price closer to the $115,000 region, the analyst said that there is still a risk of a drop towards the $105,000-$90,000 levels, according to on-chain data.
The analyst also assessed the current situation in Ethereum, noting that despite holding at $4,000, ETH remains fragile. If it fails to hold this level, it risks a drop to $3,800-$3,600.
*This is not investment advice.