- Bitcoin price broke below a key support level in a symmetrical triangle pattern, now trading at $116,567.
- Market chatter about Fed Chair Jerome Powell stepping down after a cryptic Trump remark is adding uncertainty.
- Bitcoin’s dip and fading dominance spark hopes for a new altcoin season.
- RSI near oversold (42.55) hints at rebound potential, but MACD shows bearish momentum.
Bitcoin price has dropped 2.2% in the last week and 1.8% in the last 24 hours to trade at $116,567. The slide in price has dragged the global crypto market cap down by 4.3% to $3.9 trillion. Meanwhile, daily trading volume for BTC surged 54.6% to $83 billion, suggesting that traders may be booking profits. Technical analysis shows BTC has had a bearish breakout that could send it lower, but analysts are celebrating. Here’s why.
Bitcoin Price Breaks Key Level, Risks 4% Crash
Bitcoin is in the headlines after its price slid below a crucial level, leaving the next major support around $110,000 — $112,000 range.
The chart shows a symmetrical triangle marked by points A, B, C, and D from which the BTC price broke to the downside. The drop to $116,396 suggests bears are lurking, and if the price fails to break back into the triangle, it may drop lower to around $110,113 (the 200-period SMA).
The RSI sits at 42.55, flirting with oversold territory, perfect for a potential rebound if buyers step up. Meanwhile, the MACD shows a bearish crossover, with the MACD line dipping below the signal line, hinting that selling pressure might be rising.
Traders Anticipate Altseason As Bitcoin Dominance Resumes Downtrend
Although the global crypto market is down 4.3% per CoinGecko, traders are not spooked as they speculate this price drop in BTC could mark the start of the euphoric phase of the much-awaited altcoin season.
Bitcoin dominance also broke down last week, before briefly rising again this week. However, with the 1.8% drop and breakout below the symmetrical triangle, analysts are getting ready for an altseason that may last into the second week of August as money flows from Bitcoin into large altcoins like Ethereum, XRP, and Solana.
The focus away from Bitcoin and on to alts was exemplified by Eric Trump, who signaled support for claims that Ethereum is undervalued, reposting a crypto analyst’s view that ETH should be above $8,000 based on global liquidity trends. Trump simply commented, “I agree.”
Will Jerome Powell Resign?
Speculation of Jerome Powell resigning from his role as the Chairman of the Federal Reserve Bank has gained some traction after President Trump visited him during the renovation of the Fed building.
During the visit, responding to a reporter’s question on whether his visit was “meant to put pressure on Powell to resign”, Trump said, “No, there’s no pressure…I think he’s going to do the right thing”, hinting that Powell understood that people wanted lower interest rates.
According to Special Assistant to the President and Communications Advisor Margo Martin, when asked whether he thinks Powell should resign, Trump said, “In 8 months he’ll be out.”
Currently, the market rides on speculation of either a surprise resignation of Jerome Powell or a reduction of interest rates at the next FOMC meeting on July 29-30.
Final Thoughts
In the short term, BTC might test $110,113.40 support before a decision, but if bears dominate, expect a dip to $106,200 before a potential recovery. However, a bounce could push it to $120,000 by early August if bullish sentiment kicks in. Long-term, with the scales balancing between Powell resigning and an interest rate cut, Bitcoin price may skyrocket to $145,000 by year-end.
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