Bitcoin Dips Below $79K Amid Fed Hike Bets

Bitcoin's recent rally has taken a breather as the cryptocurrency slipped below $79,000 in Asian trading on Thursday. The pullback comes as traders reassess the market and increase bets that the Federal Reserve could raise interest rates.

The decline marks a cooling off period following last week's sharp rally, with weekly gains narrowing as the seven-day window moves beyond the strongest part of the advance. Bitcoin's weekly gain has dropped from 23% to 14%, while Ether's has fallen from 29% to around 11%.

XRP posted the sharpest decline among major cryptocurrencies, falling almost 3% to just above $1.41. Despite the pullback, XRP remains up approximately 28% over seven days.

Market strategist Joel Kruger noted that daily technical indicators are in overbought territory, but said heavily overbought conditions do not always lead to a major reversal. He identified the May high near $82,820 as the next important confirmation level, and suggested that a sustained break above that level could potentially open the path toward $100,000.

For now, $79,000 remains an important short-term area to watch, while a move back above $80,000 would put the recent highs back in focus.