Bitcoin Slumps 4% Amid Fed Rate Hike Fears, Chart Signals Consolidation

Bitcoin's price dropped by 4% in the past week, falling to $77,289. This decline is largely attributed to the Federal Reserve's potential rate hike, with a 60% probability of a 25 basis point increase at the September 16 meeting.

The chart shows that Bitcoin has been grinding sideways for three weeks after a violent rally. The weekly candle is only half the story, as the chart indicates a market that has been consolidating since August.

According to the technical breakdown, the $76,121 level on the 200 EMA is crucial for the short-term structure. If Bitcoin closes below this level, it would invalidate the post-breakout structure and open up the possibility of reaching $74,450 quickly.