Bitcoin Traders Target Test of $53,000 Support as BTC Price Predictions Remains Bearish Following Fed Meeting

Bitcoin Bitcoin Price btc
Last updated:
Author
Author
Joel Frank
About Author

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

The Bitcoin (BTC) price is consolidating in the mid-$57,000s, down roughly 5% on the day, though up around 1.5% or $1,000 from earlier session lows as traders weigh the outlook for Fed rate cuts this year in wake of the latest policy announcement from the US central bank.

As anticipated, the Fed left interest rates at multi-decade high levels of 5.25-5.5% and slowed its balance sheet run-off.

The central bank will now allow its portfolio of assets to shrink by only $25 billion per month. Before, the central bank had been allowing its balance sheet to shrink by $60 billion per month.

That reduction was a little larger than some investors appeared to anticipate and could explain the dovish market reaction to the initial policy announcement.

Bitcoin briefly pushed all the way to the mid-$59,000s, and US stocks pumped, though these moves quickly reversed.

Currently, Bitcoin is trading hands roughly in line with where it was before the Fed’s announcement.

As expected, Fed Chair Jerome Powell noted recent higher-than-expected inflation data readings so far this year.

He commented that gaining confidence to cut interest rates will take longer than expected.

According to CME data, the money market-implied odds that the Fed will have cut interest rates by 25 bps by September rose to 54% from 46% one day ago.

Meanwhile, the probability of no rate cuts this year dropped to 16% from 27% one day ago.

Ultimately, the market interpreted the Fed meeting as slightly more dovish than expected, explaining the Bitcoin price bounce from lows.

Where Next for the Bitcoin Price?

While Bitcoin may have recovered from earlier session lows, recent technical developments suggest more downside is coming.

Prior to Wednesday’s Fed meeting, Bitcoin had dropped nearly 5% from just below $61,000.

That drop came after it fell 5% from near $65,000 on Tuesday.

The decrease from earlier weekly highs comes as US economic data points to sticky inflation pressures and accelerated ETF outflows.

According to data presented by The Block, US Bitcoin ETFs have seen outflows for five days straight.

The Bitcoin price's drop from earlier weekly highs comes as US economic data points to sticky inflation pressures, and as ETF outflows accelerate.
The drop in Bitcoin prices from earlier weekly highs comes as US economic data points to sticky inflation pressures and as ETF outflows accelerate. Source: The Block

Importantly, Wednesday’s dip saw Bitcoin break to the south of its two-month $60,000-$74,000ish range.

The next major level of support for Bitcoin isn’t until the mid-February highs at $53,000.

The next major level of support for the Bitcoin price isn’t until the mid-February highs at $53,000.
The next major level of support for the Bitcoin price isn’t until the mid-February highs at $53,000. Source: TradingView

Many analysts are now predicting that BTC will hit the low $50,000s.

A few analysts mentioned that the average entry price of US Bitcoin ETF buyers at $57,300 is important to watch.

“There might have been lots of ‘TradFi’ tourists in crypto pushing longs into the halving,” 10x CEO Markus Thielen wrote.  “This time is now over. We expect more unwinding as… Bitcoin trades below $57,300. This will likely lower prices to… a -25% to -29% correction from the $73,000 top. That explains our price target of $52,000/$55,000 during the last three weeks.”

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

More Articles

Price Analysis
$TRUMP Pumping Over 20% This Week: Presidential Memecoin Back for Good?
Arslan Butt
Arslan Butt
2025-02-15 15:26:50
Price Analysis
Study Predicts Bitcoin Surge to $1M by Early 2027: Is That Possible?
Arslan Butt
Arslan Butt
2025-02-15 14:45:43
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors