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Bitcoin Price Forecast: Will it Reach $119K or Correct to $90K?

Bitcoin reached an all-time high of $106,648 but retreated amid uncertainty about U.S. Federal Reserve interest rate cuts. Institutional inflows into Bitcoin Spot ETFs remain strong, yet technical analysis suggests a possible downward correction. Market sentiment indicates that Bitcoin could either rise towards a target of $119,510 or face a pullback to $90,000, depending on upcoming economic indicators and trends.

Bitcoin experienced a momentous surge, achieving an all-time high of $106,648 but later experienced a retreat amid speculation surrounding the U.S. Federal Reserve’s interest rate decisions. A rate cut could benefit risk assets like Bitcoin, although projections for 2025 remain ambiguous. Institutional interest persists with significant inflows into Bitcoin Spot ETFs, signaling ongoing demand. However, caution among traders is warranted due to bearish divergence in technical indicators, indicating potential for a correction. If Bitcoin continues its upward trajectory, a new peak around $119,510 may be tested, whereas a pullback below $100,000 could lead to a reevaluation of support levels at $90,000.

The article analyzes Bitcoin’s recent price fluctuations, emphasizing the interplay between interest rate decisions by the U.S. Federal Reserve and market reaction. It underscores the importance of institutional investments through Bitcoin Spot ETFs, which have seen substantial inflows. Additionally, technical analysis hints at potential vulnerabilities in Bitcoin’s bullish momentum as indicated by Relative Strength Index (RSI) and Awesome Oscillator (AO) readings. This mixed landscape of bullish prospects and technical hesitations shapes the current market environment for Bitcoin.

While Bitcoin has reached a remarkable high, the financial landscape is clouded with uncertainties stemming from impending Federal Reserve decisions and weakened bullish indicators. Institutional investment provides robust support; however, emerging bearish signals necessitate cautious optimism among traders. The upcoming days will be crucial to determine if Bitcoin can maintain its upward momentum or if a corrective retracement will ensue, potentially testing key support levels.

Original Source: www.fxstreet.com

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