Bitcoin (BTC) fell to intraday lows after the Mar. 6 Wall Street open as market discounted good news coming from the US’ first White House Crypto Summit.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Bitcoin shrugs off Crypto Summit excitement
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading down 2% on the day.
A run to local highs near $93,000 ended in rejection earlier as bulls lacked the strength to take price action further into its old trading range.
Despite the Crypto Summit being only a day away and promising bullish announcements involving a Bitcoin or crypto reserve, markets showed little interest or optimism as traders stayed cautious.
Justin Bennett, who previously predicted that Bitcoin would retest its multimonth floor at $78,000, was among them.
“There’s the retest of $92k resistance. It worked so well the first time bulls wanted to do it again,” he wrote in part of a post on X, revealing a short BTC position from $91,000.
BTC/USD 1-day chart. Source: Justin Bennett/X
Nihilus, the pseudonymous founder of crypto trading community Moriband Trading, said that Bitcoin futures markets faced “decision time.”
An accompanying chart highlighted the importance of $90,000 on daily timeframes as a key support/resistance level.
BTC/USDT perpetual swaps 1-day chart. Source: Nihilus/X
“Bitcoin is almost testing an important level of resistance,” fellow trader Crypto Fella continued, adopting a more positive stance.
“With all the volatility expected from tomorrow Crypto Summit event this could be a breakout. Of course we can dip lower but I definitely think this run is far from over yet.”
Jobless claims boost Fed rate cut bets
Macroeconomic volatility catalysts remained muted for crypto, with US jobless claims having little impact on market performance despite coming in short of expectations.
Related: Bitcoin gets March 25 ‘blast-off date’ as US dollar hits 4-month low
Reacting, trading resource The Kobeissi Letter suggested that the odds of the Federal Reserve cutting interest rates sooner — a key boost for crypto and risk assets — were increasing.
“Interest rates are now down -60 BASIS POINTS in 6 weeks as DOGE cuts ramp up,” it wrote in part of an X thread on the day, referring to moves by the US Department of Government Efficiency (DOGE).
“Even as inflation has rebounded, rates are falling in anticipation of DOGE’s economic impact. Rate cut odds are rising.”
Fed target rate probabilities. Source: CME Group
The latest estimates from CME Group’s FedWatch Tool saw roughly a 45% chance of the Fed cutting rates at its May meeting.
Kobeissi added that jobless claims were up 200$ year-to-date compared to 2024.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
