Bitcoin Price Faces Critical Support Test; Fed Rate Outlook Clouds Short Term Outlook

Bitcoin price is testing support at the 200-day EMA for the second time this week. A break below could lead to further losses toward $60,800.

Holding above the 200-EMA could provide a bounce and allow Bitcoin to reclaim the $69K threshold. Clearing $69K may signal a continuation toward new highs.

Inflows to Bitcoin ETFs have turned positive again, suggesting recent dumps may be attempts to catch retailers off-guard.

Fed Chair Jerome Powell urged against expecting rate cuts soon, given continued confidence in disinflationary progress. This initially boosted Bitcoin 1% on currency deval concerns.

Technicals show hidden bullish divergence on Bitcoin's daily chart, though weakening momentum signals like declining volume remain a concern on further near-term downside.