Key Takeaways
- BTC dropped beneath the $76,000 threshold following the Federal Reserve’s decision to increase interest rates by 25 basis points, bringing them to 3.75-4%
- This marks the central bank’s first rate increase since July 2023, concluding a three-year period of accommodative monetary policy
- Traditional markets showed resilience, with the Nasdaq climbing 1.5% and the S&P 500 advancing 0.9%
- The CryptoQuant Bull Score Index declined from 80 to 60 ā reaching the platform’s lower boundary for maintaining bullish sentiment
- Analysts are watching $70,000 as immediate support, with a secondary zone between $62,000-$65,000, per CryptoQuant data
The world’s leading cryptocurrency tumbled below the $76,000 mark this week as the United States Federal Reserve implemented a 25-basis-point interest rate increase. This monetary policy adjustment elevated the benchmark rate to a 3.75-4% corridor.
The rate adjustment represents the Fed’s initial tightening move since July 2023. This policy shift brought an end to a three-year stretch during which the central bank maintained accommodative conditions through rate cuts or steady positioning.
Following the initial decline, Bitcoin showed signs of stabilization, registering a 0.5% gain during the session at press time. The BTC/USD pair had touched fresh monthly lows on Tuesday before staging a recovery.
Market data from TradingView indicated diminishing volatility across the previous 24-hour period. Hourly charts revealed relatively contained price movements during recent trading sessions.
Information compiled by CoinGlass demonstrated concentrated liquidity clustering near current spot levels on both the bid and ask sides. This configuration typically emerges during periods of consolidation and sideways trading activity.
Conventional equity markets demonstrated strength despite the monetary tightening. The S&P 500 posted a 0.9% advance while the Nasdaq Composite Index surged 1.5% higher.
Market commentary platform The Kobeissi Letter addressed the equity market resilience in an X post. “The asset owner economy just keeps getting better,” the analysis noted, highlighting the Nasdaq’s performance as confirmation that investors with holdings were thriving even amid restrictive monetary policy.
Monetary tightening extended beyond American shores. The European Central Bank implemented a 0.25% rate increase during the previous week.
The Bank of Japan faces expectations to reveal its own rate increase on Friday. Such an announcement would mark three influential central banks tightening policy within an extremely compressed timeframe.
CryptoQuant Bull Score Reaches Lower Threshold
The Bull Score Index from CryptoQuant, a metric designed to monitor Bitcoin’s cyclical patterns, contracted from 80 down to 60. According to the platform’s framework, 60 represents the minimum threshold for maintaining bullish market characterization.
Julio Moreno, who serves as head of research at CryptoQuant, conveyed the organization’s assessment in a weekly briefing provided to Cointelegraph. “The trend is still bullish, but momentum and macro are working against it near-term,” his analysis stated.
Moreno identified weakening American appetite for Bitcoin alongside increasing altcoin capital flows as immediate challenges. The postponement of the CLARITY Act combined with the Federal Reserve’s policy shift were also mentioned as catalysts for anticipated price stabilization.
Critical Support Zones Under Watch
The CryptoQuant analysis identified two specific support areas for market participants to track closely. These price levels are positioned at $70,000 and within the $62,000-$65,000 corridor.
Moreno’s complete assessment stated: “Bitcoin is cooling, not turning. A Bull Score of 60 keeps the trend bullish, but fading US demand, rising altcoin inflows, and a week of macro risk ā the delay of the CLARITY Act and a likely Fed hike ā argue for consolidation.”
Bitcoin’s impressive August advance had accumulated approximately 25% gains before the present cooling period emerged. Macroeconomic headwinds have subsequently created near-term resistance to upward momentum continuation.
As of Thursday, CryptoQuant’s Bull Score Index registered at 60/100.
Cryptocurrency market analyst Killa (@KillaXBT) anticipates BTC will establish a higher low formation before advancing toward the $90K level, though he cautions the movement may not originate directly from present price levels. His outlook suggests BTC could experience extended consolidation, with a possible retreat into the lower $70K range serving as the actual bottom before upward continuation resumes. He characterizes this as a classic liquidity pattern ā eliminating weak hands before the genuine rally emerges.
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