Bitcoin (BTC) News: Holding The 200-day Average, But For How Long?

Bitcoin (BTC) is experiencing a downturn following the hawkish comments from Federal Reserve Chairman Jerome Powell, prompting caution among bulls. Despite selling pressure, BTC remains above the critical 200-day simple moving average (SMA) around $109,250, currently trading at approximately $111,000. This level is positive for bulls, yet their confidence is under scrutiny as BTC continues to trade below the Ichimoku cloud, indicating short-term bearish sentiment. The potential risk of breaking below the 200-day SMA could lead to further declines, bringing prices closer to the psychological barrier of $100,000. Various factors, including a bullish crossover in the dollar index and a rebound in the 10-year Treasury yield, suggest ongoing strength for the USD, potentially weighing on risk assets like Bitcoin. Options data indicates heightened downside fears in the market, emphasizing caution for Bitcoin traders. A decisive move above the Ichimoku cloud at $116,000 is required to restore bullish sentiment and pave the way for future gains.

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