Bitcoin, Ethereum, Dogecoin Dip After Powell’s Dovish Comments

Major cryptocurrencies witnessed a setback on Sunday evening after Federal Reserve Chair Jerome Powell hinted at the possibility of curbing rate hikes due to stress in the banking sector. 

What Happened: Over the past month, Bitcoin has been primarily in a consolidation phase. Though it has slightly drifted downwards, it has managed to maintain its value. In fact, it’s only down by 2% over the last 30 days, which provides investors with a much-needed reprieve from the wild fluctuations of last year.

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At the time of writing, the global crypto market capitalization stood at $1.11 trillion, a decrease of 1.89% over the last day. 

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Stock futures witnessed a minor decline on Sunday evening as investors watched the ongoing discussions regarding the U.S. debt ceiling. The S&P 500 futures fell approximately 0.2%, while the Nasdaq 100 futures observed a 0.1% decline.

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Analyst Notes: “A month ago, Bitcoin was surging, passing the $30,000 level for the first time since the summer of 2022. Regional banking concerns and rising Fed rate cut bets provided a lot of support for cryptos. The bullish catalysts have now faded away and so has roughly 30% of this year’s rally.  Bitcoin did not get any favor from SEC Gensler earlier in the week, just the standard comments on how rules are already in place. The regulatory question remains the key for the cryptoverse and traders will have to remain patient,” said Edward Moya, Senior Market Analyst at OANDA.

Crypto trader Tony Vays suggested that the current consolidation of Bitcoin indicates that it is on track to experience an extended bull market. Based on his analysis, Vays believes that Bitcoin is poised to reach noteworthy heights, with a potential value of up to $300,000. 

“We continue to consolidate. Its continued to be frustrating. I’ve been a Bitcoiner, and it’s very, very clear that Bitcoin is choosing the purple path.I have two paths for Bitcoin. One was a little more bullish with a lower top ($200,000), and the other was a little more bearish with a higher top ($300,000) a little further down in time.”

Crypto analyst Michael Van de Poppe has identified a Classic Choppy Pattern on Bitcoin. He said currently, Bitcoin is experiencing a rejection at $27,200 and consolidating, with the CME gap hovering around $26,900. 

Van de Poppe suggests that Bitcoin needs to break and flip $27,200 in order to generate sustained momentum. Furthermore, if the price falls, there is a strong support level around $26,000-$26,500.