Bitcoin: Is the Powell-Fueled Pullback a Dip-Buying Opportunity?

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Bitcoin: Is the Powell-Fueled Pullback a Dip-Buying Opportunity?

• Bitcoin’s recent dip raises questions about whether its post-election rally has run its course.

• Despite Powell’s hawkish remarks, Bitcoin’s long-term bullish trend ******** intact.

• Key support levels will determine if Bitcoin’s rally can continue or if further corrections are ahead.

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‘s recent decline of over 3% marks the first significant dip since its rally began following the US Presidential election on November 5. While the pullback can partly be attributed to comments from Jerome , the central question arises: Has the so-called “Trump rally” in Bitcoin and altcoins run its course?

The surge in Bitcoin’s price after Donald Trump’s election victory can largely be credited to his promises to support the crypto sector, which had investors bullish. Bitcoin recently hit a new record of $93,129, thanks to both these promises and the broader crypto market dynamics.

Yet, external factors—such as a relatively calm election and Trump’s clear victory—also contributed to this rise. With Trump securing a non-controversial win and a majority in the Senate, risk appetite increased, bringing traditional investors into the crypto fold.

Another catalyst was the ‘s 25-basis point interest rate cut, which, though expected, served as a buying excuse for many crypto investors. With the market buoyed by the ‘s actions, Bitcoin seemed poised for even greater highs, possibly breaking the $100,000 mark.

However, Powell’s hawkish stance in his recent speech has put the brakes on the crypto rally. Powell asserted that the US economy ******** strong and that interest rates won’t be cut hastily, dampening market expectations for a December rate cut. As a result, Bitcoin and the broader crypto market have seen significant sell-offs, particularly in Bitcoin ETFs, as short-term investors seize the opportunity to take profits.

Despite the recent downturn, the broader bullish trend ******** intact. Stable political prospects in the US, coupled with expectations for a strong economy, should help maintain investor appetite for risk. However, with the recent surge in Bitcoin’s price, these corrections may pose risks for short-term traders. That said, many investors are viewing these dips as opportunities to buy the dip, anticipating a potential altcoin rally as Bitcoin continues to gain ground.

Bitcoin’s dominance rate has been fluctuating, especially after Powell’s remarks. While Bitcoin’s dominance has rebounded, many altcoins have experienced sharp reversals, indicating that the market may be in a transitional phase. As we assess the current state of the market, it’s clear that the first wave of the Trump effect on cryptocurrencies is priced in, and short-term support and resistance levels are now critical.

Current Support and Resistance Levels for Bitcoin

Looking at the charts, Bitcoin has lost some momentum after hitting record highs this week. It touched the $90,000 range briefly but ******* to sustain that level, dropping to $87,000 after recent sales. Support has held at this price zone since early this week.

Bitcoin’s bullish trend, which began in September, saw it close above the $80,000 resistance level last week. This week, Bitcoin tested the $92,470 resistance level, a key Fibonacci point. However, rapid selling at this level suggests that Bitcoin may struggle to break above it for now. If Bitcoin fails to hold the $87,200 region, we could see a dip to $84,700, with further declines possible if it drops below $80,000.

On the weekly chart, Bitcoin broke the midline of its upward channel this week, signaling a possible continuation of the long-term bullish trend. Should the price pull back further, $85,700 could serve as a critical support level. If Bitcoin holds above this level, a rally toward $105,500—a key Fibonacci target—******** a real possibility.

In summary, Bitcoin’s recent dip, while notable, could be a buying opportunity for long-term investors, especially if it finds solid support at key levels. The broader bullish

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******** intact, but market watchers should closely monitor technical levels for any signs of deeper corrections.

***

Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.

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#Bitcoin #PowellFueled #Pullback #DipBuying #Opportunity

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