Bitcoin(
BTCUSDT) has fallen by more than -4% over the past day.
Let's take a look at the reasons for the decline.
One of the key reasons behind Bitcoin’s decline in the past 24 hours (July 25) could be the reduced likelihood of Jerome Powell being replaced as Chair of the Federal Reserve.
In recent days, market participants were speculating that Donald Trump might replace Powell — a scenario that was considered bullish for risk assets like Bitcoin. However, recent reports of a meeting between Trump and Powell, and signs that Powell might not be dismissed, have weakened this fundamental narrative.
This meeting may signal a truce or reduced tension between Trump’s team and Powell, which could imply a continuation of current Fed policies. That’s bad news for Bitcoin, as it removes a potential psychological tailwind from the market and dampens speculative sentiment.
As a result:
Bitcoin currently appears to have broken the Support zone($116,900-$115,730), Support lines, 100_SMA(4-hour TF), and the lower line of the Symmetrical Triangle Pattern with a bearish Marubozu candle.
Note: In general, trading was difficult when Bitcoin was inside a symmetrical triangle (about 10 days).
It also seems that the pullback to these zones has ended and Bitcoin is waiting for the next decline.
In terms of Elliott Wave theory, Bitcoin appears to be completing microwave 5 of microwave C of major wave 4. There is a possibility that main wave 4 will create a descending channel and complete at the bottom of the descending channel (at Potential Reversal Zone(PRZ)[$113,150-$111,600]).
I expect Bitcoin to start rising again after completing the CME Gap($115,060-$114,947) from Cumulative Long Liquidation Leverage($114,480-$114,000) or Cumulative Long Liquidation Leverage($113,284-$112,603) near the PRZ and Heavy Support zone($111,980-$105,820).
Cumulative Short Liquidation Leverage: $117,904-$116,665
Cumulative Short Liquidation Leverage: $121,046-$119,761
Do you think Bitcoin has entered a major correction, or does it still have a chance to create a new ATH?
Please respect each other's ideas and express them politely if you agree or disagree.
Bitcoin Analyze (BTCUSDT), 4-hour time frame.
Be sure to follow the updated ideas.
Do not forget to put a Stop loss for your positions (For every position you want to open).
Please follow your strategy and updates; this is just my Idea, and I will gladly see your ideas in this post.
Please do not forget the ✅' like'✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
BTCUSDT) has fallen by more than -4% over the past day. Let's take a look at the reasons for the decline.
One of the key reasons behind Bitcoin’s decline in the past 24 hours (July 25) could be the reduced likelihood of Jerome Powell being replaced as Chair of the Federal Reserve.
In recent days, market participants were speculating that Donald Trump might replace Powell — a scenario that was considered bullish for risk assets like Bitcoin. However, recent reports of a meeting between Trump and Powell, and signs that Powell might not be dismissed, have weakened this fundamental narrative.
This meeting may signal a truce or reduced tension between Trump’s team and Powell, which could imply a continuation of current Fed policies. That’s bad news for Bitcoin, as it removes a potential psychological tailwind from the market and dampens speculative sentiment.
As a result:
- Over $500 million in liquidations(Long Positions) occurred
- Weak inflows into Bitcoin ETFs
- A stronger U.S. Dollar Index (
DXY) - And declining Gold(
XAUUSD) prices over the past two days - all added additional selling pressure on BTC.
Bitcoin currently appears to have broken the Support zone($116,900-$115,730), Support lines, 100_SMA(4-hour TF), and the lower line of the Symmetrical Triangle Pattern with a bearish Marubozu candle.
Note: In general, trading was difficult when Bitcoin was inside a symmetrical triangle (about 10 days).
It also seems that the pullback to these zones has ended and Bitcoin is waiting for the next decline.
In terms of Elliott Wave theory, Bitcoin appears to be completing microwave 5 of microwave C of major wave 4. There is a possibility that main wave 4 will create a descending channel and complete at the bottom of the descending channel (at Potential Reversal Zone(PRZ)[$113,150-$111,600]).
I expect Bitcoin to start rising again after completing the CME Gap($115,060-$114,947) from Cumulative Long Liquidation Leverage($114,480-$114,000) or Cumulative Long Liquidation Leverage($113,284-$112,603) near the PRZ and Heavy Support zone($111,980-$105,820).
Cumulative Short Liquidation Leverage: $117,904-$116,665
Cumulative Short Liquidation Leverage: $121,046-$119,761
Do you think Bitcoin has entered a major correction, or does it still have a chance to create a new ATH?
Please respect each other's ideas and express them politely if you agree or disagree.
Bitcoin Analyze (BTCUSDT), 4-hour time frame.
Be sure to follow the updated ideas.
Do not forget to put a Stop loss for your positions (For every position you want to open).
Please follow your strategy and updates; this is just my Idea, and I will gladly see your ideas in this post.
Please do not forget the ✅' like'✅ button 🙏😊 & Share it with your friends; thanks, and Trade safe.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🎁Welcome than a 50% bonus(Low Spread)👉vtm.pro/Y3AV7r
🎁Get a 20% Discount on your trading FEE on BYBIT:👉partner.bybit.com/b/PEJMANZWIN
🎁Get a 20% Bonus & 30% Discount on LBANK exchange(NO KYC)👉lbank.one/join/uBythQd
🎁Get a 20% Discount on your trading FEE on BYBIT:👉partner.bybit.com/b/PEJMANZWIN
🎁Get a 20% Bonus & 30% Discount on LBANK exchange(NO KYC)👉lbank.one/join/uBythQd
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.