Political and macroeconomic events weighed on bitcoin’s recent decline. President Trump’s unprecedented attempt to dismiss Fed Governor Lisa Cook raised fresh concerns about central bank independence and market stability, though the immediate reaction was muted. The political news added to a broader risk-off sentiment, compounded by renewed inflation worries, large whale sell-offs, thin liquidity, and ETF outflows.
BTCUSD formed a descending channel with lower swings and bearish pressure from the Ichimoku Cloud, indicating potential for further downside. The price has retreated below the bearish fair value gap and resistance at 112000, where an extension of its bearish momentum could prompt a retest of the swing low at 109000. Should BTCUSD break below the support, the price could weaken further toward the 78.6% Fibonacci Extension and channel’s lower bound at 107500. Conversely, closing above the resistance at 112000 could prompt a further rise toward the channel’s upper bound and resistance at 113000.
By Li Xing Gan, Financial Markets Strategist Consultant to Exness
