The showdown between bulls and bears is escalating! Who will dominate Bitcoin's future: the Federal Reserve's interest rate cuts or technical breakdowns?
On one side, seasoned traders are issuing warnings of a sharp decline, while on the other, the potential benefits of the Federal Reserve's interest rate cuts are creating fierce competition in the Bitcoin market.
The bearish camp is fully armed, with Peter Brandt's technical analysis resonating with Titan of Crypto's warnings about support levels, coupled with the shadow of Bitcoin's largest drawdown of 36.45% in this cycle last November, revealing emerging market panic.
The bullish forces are also not to be underestimated, as the upcoming FOMC meeting is expected to cut rates by 25 basis points. Historical data shows that rate-cutting cycles often benefit risk assets. More crucially, the flow of funds into Bitcoin ETFs has reversed, with eight out of the past ten trading days recording net inflows, sharply contrasting with the net outflows in November, indicating a clear return of institutional capital.
Polymarket data shows that the market's expectation for Bitcoin to reach $95,000 by the end of the year remains as high as 61%, suggesting that volatility amid the divergence between bulls and bears may further amplify.
