Bitcoin was down -2.3% in Monday trading as volatility returns to the downside.
BTCUSD – Weekly Chart
The price of Bitcoin is testing a very important resistance line that links the previous two all-time highs. A failure here would mean the $100k push was a false breakout.
Bitcoin has now slipped to trade at the $92,944 level and the key support line now comes in around $90,000 for the world’s largest cryptocurrency. Support below that level could be at the $73,739 price level, which was the previous all-time high in 2024.
The crypto market has seen large outflows after the latest FOMC meeting said that the Federal Reserve would only cut rates two times in 2025, rather than four. On Thursday, investors pulled a record $576 million from crypto ETFs, according to CoinShares data. By Friday, the outflow had risen to $1 billion. ETFs had seen an additional $3.2 billion worth of assets the previous week, meaning that inflows dropped more than -90% week-over-week.
The latest fall in price now adds jitters to the market at the key price level. Further panic selling could see an end to the 2024 bull market that has been driven by the arrival of BlackRock and other institutional firms to the ETF market. BTC also rose sharply after the election win of Donald Trump.
Investors have been expecting the incoming President to set up a Bitcoin strategic reserve fund, although the idea was dismissed as “crazy” by a former Treasury Secretary.
