The broader cryptocurrency market fell about 4% on Wednesday, pulling major tokens into key support areas and putting renewed pressure on Bitcoin (BTC).
By mid-afternoon, bitcoin had fallen nearly 5% and was trading near $71,240, a decline that had analysts re-examining whether the current downturn is just a brief pause or the beginning of a deeper correction.
Is there a deeper Bitcoin bounce ahead?
Market analyst Crypto Con argued on social media platform X that Bitcoin’s current weakness is now closely tracking the 2022 bear market after an initial period of sharp short-term underperformance.
Drawing on historical cycle patterns, Crypto Con Suggested The next possible phases could see Bitcoin fall to $45,000 and – in a longer drawdown – to $35,000.
He noted that many technical indicators still have room to decline before reaching cyclical lows and that support measures are converging in the $35,000 to $45,000 range.
“It is the last drop that causes the most damage, and it is the part that decreases in each cycle,” he noted, pointing to the period from October to November as the period in which the deepest damage occurs historically.
Macroeconomic developments reinforce this cautious tone. On Wednesday, the Federal Reserve (the US central bank) held its meeting Policy rate At 3.5%-3.75%, as widely expected.
Market expert Kyle Chasset weighed in on the Federal Reserve’s results and Chairman Jerome Powell’s comments, saying that the central bank’s messages and recent statements create a difficult backdrop for risky assets like Bitcoin.
Updated Fed forecasts show one rate cut in 2026 – unchanged from December – while Fed updated forecasts show one rate cut in 2026 – unchanged from December – while updated Fed forecasts show one rate cut in 2026 Inflation expectations The interest rate was raised to 2.7% from 2.5%, a shift that Powell linked in part to higher oil prices.
Powell also described the economic consequences of tensions in the Middle East as “uncertain,” noting that “it is too early to know their scope and duration.”
Key price levels to watch
Chassis described The combination of these elements is “brutal” for risk markets. He said Bitcoin’s bullish scenario depends on the Fed treating the latest oil shock as temporary: If Powell does that, markets could rise; If the Fed sees the rally as prolonged, liquidity could shrink, and Bitcoin could break support at $70,000.
Chasset highlighted immediate technical levels to watch: $70,000 is the key floor for the bulls to defend, with $67,000 as the next bearish barrier; On the upside, restoring $76,000 would open the door for relief to move toward $80,000.
Institutional flows into and out of spot Bitcoin Exchange-traded funds Exchange-traded funds (ETFs) are another critical factor in the near term, according to Chassis. He noted that a one-day institutional drawdown above $300 million would indicate lower risk, while steady flows suggest buyers are treating the decline as a buying opportunity.
In addition to the technical backdrop, he said Bitcoin’s volatility recently reached 1%, its lowest level in two months — pressure that historically precedes renewed volatility. In this sense, Powell’s comments were a potential catalyst for a reawakening of price volatility.
Featured image from OpenArt, chart from TradingView.com
Editing process Bitcoinist focuses on providing well-researched, accurate, and unbiased content. We adhere to strict sourcing standards, and every page is carefully reviewed by our team of senior technology experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.
