Bitcoin once fell below $65,000, but analysts say "the pullback is over"
Bitcoin fell below $65,000 on Thursday against the backdrop of a stronger US dollar, but analysts believe the pullback has ended. The softening trend in Bitcoin prices is attributed to the US dollar's strength offsetting the gains from the dovish tone of the Federal Reserve. Market analysis firms believe that Bitcoin has completed its pullback before rebounding and is expected to perform well in the next upward trend. Bitcoin traders point out that the bottom of the pullback has formed before holding the $65,000 level. Bitcoin may consolidate in the current price range for a period of time and will need to break through the $69,000 high to reach a new high
According to the information from the Zhitong Finance and Economics APP, against the backdrop of a stronger US dollar, Bitcoin fell on Thursday, offsetting some of the gains from the significant rebound on Wednesday stimulated by the dovish tone of the Federal Reserve. Bitcoin once fell below $65,000 and, as of the time of writing, is trading at $66,196.
The weakness in Bitcoin's price trend may be due to the unexpected interest rate cut of 25 basis points by the Swiss National Bank, which led to a renewed strength in the US dollar. The US dollar's trend has offset the sharp drop on Wednesday when Federal Reserve Chairman Powell maintained a dovish stance despite higher-than-expected inflation data.
The Invesco DB US Dollar Index TR Bullish Fund measures the strength of the US dollar against other major currencies. A stronger US dollar typically puts pressure on the prices of other assets. Macro analyst Michael Kao posted on social media, suggesting that this trend may be due to market participants expecting other major central banks to cut interest rates ahead of the Federal Reserve.
Market analysis firm Swissblock stated that Bitcoin completed a pullback before the rebound on Wednesday, almost reaching their target price of $58,000-$59,000 as they called for entering a cooling-off phase last week.
Swissblock analyst Henrik Zeberg said on Thursday, "Higher prices are coming soon." He added that in the next phase of the uptrend, alternative coins and Bitcoin mining machines will perform "very well."
Cryptocurrency trader Jelle pointed out that a bottom has formed before Bitcoin held the $65,000 level. He added that Bitcoin may consolidate in the current price range for a period of time and needs to break through the high of $69,000 (the peak in 2021) to reignite the uptrend and reach a new high