Cryptocurrency analyst Steven Ehrlich commented on Bitcoin following the sharp sell-off in the market.
According to Ehrlich, although Bitcoin briefly reclaimed the $85,000 level in the morning hours following New York Fed President John Williams’ “dovish” statements about the possibility of a new interest rate cut next month, this rise is not expected to be permanent.
Ehrlich noted that technical indicators indicate the downtrend is not yet complete, saying, “Tactical signals suggest the market still has a long way to go.” The analyst argued that, unlike previous sharp declines, this time Bitcoin is not just setting its own direction, but the direction of the entire crypto market.
Ehrlich noted that Bitcoin broke through the lower bound of its multi-year upward channel, which began in 2023 and strengthened by the acceleration during the Trump era. He noted that this level has served as support many times in the past, but failed to hold this time. According to the analyst, the market is currently searching for new support.
At the time of writing, the BTC price is trading at $84,446.
*This is not investment advice.