Bitcoin's Brief Rally Fails to Hold as Bearish Trends Continue

The Bitcoin price briefly touched $66,921 before falling back to $63,422, raising concerns that it may be a bull trap. Several indicators on the daily chart suggest a bearish trend, including the death cross formation where the 50-day exponential moving average is below the 200-day EMA. The Relative Strength Index (RSI) is at 46.5, which is considered neutral to slightly bearish.

The market has been experiencing a squeeze momentum indicator for nine bars, which can often resolve in the direction of the prior trend. In this case, that trend is down. Traders on Myriad are placing 65.7% odds on Bitcoin hitting $55,000 first, rather than reaching its target of $84,000.

The Federal Open Market Committee meets today and tomorrow, with Fed Chair Kevin Warsh's decision and press conference due July 29. Markets expect a rate hold at 3.50-3.75%, but the memory of Warsh's June presser has traders deleveraging rather than holding through.