Bitcoin has retreated below $70,000 following the latest Federal Reserve meeting, with some analysts warning of deeper declines ahead. On-chain indicators, however, suggest potential bullish pressure, including record-low exchange reserves, significant whale accumulation, and negative funding rates historically linked to strong rallies.
Bitcoin lost momentum after a solid multi-day run, dipping below $70,000 as the total cryptocurrency market capitalization slipped below $2.5 trillion. Numerous analysts caution that bears still control the market and expect more substantial price declines soon.
The price action followed the recent Federal Open Market Committee meeting, where Chairman Jerome Powell kept rates unchanged and cited stubborn inflation and geopolitical tensions. Analyst Ted noted that the current structure mirrors the 2022 pattern, which led to a drop to around $16,000, warning the price could slip under $50,000.
Another analyst known as bee suggested Bitcoin’s resurgence to nearly $76,000 was a “fakeout” and bull trap, claiming “we are still in a bear market” and the valuation could plummet to as low as $46,760. Analyst Leshka.eth predicted a pullback to around $53,000 this summer.
However, whales snapped up 40,000 Bitcoin units in a single week, while spot Bitcoin ETFs have seen strong inflows. The amount of coins sitting on exchanges dropped to a new six-year low of approximately 2.723 million, reducing immediate selling pressure.
Analyst Ali Martinez identified negative funding rates as a bullish indicator historically. He noted such a development has always been a precursor of a “major relief rally,” as seen in August 2023 when it preceded a 176% price increase.
