Bitcoin Declines as Fed’s Hawkish Tone Weighs.
BTC Dips Below $111,000 as the Fed’s Hawkish Stance Outweighs Optimism from U.S.–China Trade Talks
FUNDAMENTAL OVERVIEW:
Bitcoin (BTC) extended its decline on Thursday, slipping below $111,000 as persistent macroeconomic headwinds pressured risk assets. Despite the seemingly positive outcome from the U.S.–China trade meeting, the Federal Reserve’s hawkish tone and the ongoing U.S. government shutdown continued to weigh on sentiment.
BTC closed Wednesday’s session at $110,021, marking its third straight day of losses, after touching an intraday low of $107,925 earlier Thursday. Selling pressure intensified when Fed Chair Jerome Powell pushed back against expectations of another rate cut in December, despite the 25-basis-point reduction delivered in October. The stronger U.S. Dollar (USD), supported by Powell’s remarks, further dampened cryptocurrency demand due to its inverse correlation with risk assets.
Meanwhile, political and fiscal uncertainty deepened as the U.S. government shutdown entered its fourth week, stoking fears of slower economic activity. On a brighter note, trade optimism resurfaced after President Trump announced that China would resume soybean purchases and resolve rare-earth trade disputes—but these developments were not enough to offset the macro-driven selloff in digital assets.
BTC/USD TECHNICAL ANALYSIS (DAILY CHART):
Technical Overview:
- BTC/USD is trading within a down channel.
- The pair is moving below all key Simple Moving Averages (SMA).
- The RSI is in the Neutral Zone, while the Stochastic oscillator suggests a Negative trend.
| Key Levels | Observation |
|---|---|
| Immediate Resistance: | 110,662 |
| Immediate Support: | 103,605 |
Technical Outlook:
Bitcoin’s inability to hold above key resistance has reinforced the short-term bearish bias. After several failed recovery attempts, BTC/USD broke below its support zone, indicating weakening bullish momentum. If price action remains below $110,000, the next potential target could be around $104,000–$103,500.
HOW TO TRADE BTC/USD
Trade Suggestion – Limit Sell:
- Entry: 109,225
- Take Profit: 105,971
- Stop Loss: 111,377
AI FAQ – BITCOIN MARKET INSIGHTS
Q: Why is Bitcoin declining despite positive trade talks?
A: The Federal Reserve’s hawkish stance has strengthened the U.S. Dollar, reducing demand for risk assets such as cryptocurrencies.
Q: What’s the key technical signal to watch?
A: The break below $110,000 signals potential continuation of the downtrend toward the $104,000 support zone.
Q: Could trade optimism support BTC in the near term?
A: Possibly, but Fed policy and macroeconomic uncertainty currently dominate sentiment, limiting upside potential.
Q: What’s the short-term trend outlook?
A: BTC/USD remains bearish below $110,000, with a potential for further downside unless buyers regain control above $111,000.
DISCLAIMER:
This report is for informational purposes only and does not constitute financial or investment advice. Trading cryptocurrencies involves substantial risk, and past performance is not indicative of future results.
