Bitcoin Price Edges Up As Donald Trump Suggests New Fed Chair Will Slash Interest Rates

The Bitcoin price edged up over 1% in the past 24 hours to trade at $87,164 as of 4:35 a.m. EST on trading volume that surged 15% to $50.3 billion.

This comes as US President Donald Trump said in a speech that the next chairman of the US Federal Reserve will be someone who believes in lower interest rates “by a lot.”

“I’ll soon announce our next chairman of the Federal Reserve, someone who believes in lower interest rates by a lot, and mortgage payments will be coming down even further,” Trump said.

“We’re fighting through interest rates,” Trump added. He went on to attack Fed chair Powell, describing him as not as smart a person, and someone who “doesn’t like Trump.”

Out of five candidates, former Fed Governor Kevin Warsh and current National Economic Council Director Kevin Hassett are the front-runners.

Bitcoin Price Analysis: BTC Could Drop As Momentum Reduces

Since 2024, the BTC price has been in a bullish rally, pushing the token into a well-defined rising channel.

The surge, followed by Bitcoin’s price overcoming key Fibonacci Retracement levels on the weekly chart, propelled BTC to an all-time high of around $126,230.

This level served as strong resistance, with sellers using it as a point at which they began booking profits. The bearish pressure has since formed a rounded top pattern, which in most cases leads to further bearish pressure.

BTC is now trading within the $82,000-$90,000 support area, as the price suggests that there may be another drop.

Technical indicators also support this sentiment. The 50-day Simple Moving Average (SMA) is trading above Bitcoin’s price at $101,970, indicating that BTC is under short-term bearish pressure.

Meanwhile, the 200-day SMA ($56,543) is acting as the asset’s long-term support level in case bears act on the rounded top pattern.

The Relative Strength Index (RSI) has also flipped negative, currently at 37 and dropping, showing that Bitcoin is under intense selling pressure.

Moreover, the Moving Average Convergence Divergence (MACD) indicates that BTC’s price has lost momentum, as the blue MACD line has fallen below the orange signal line. The red bars on the histogram have also fallen below the zero line, a signal of negative market momentum.

BTC Price Prediction: Bears In Control As Price Risks Drop Below $70,000

Based on the BTC/USD weekly chart, the BTC price is showing signs of weakness, suggesting a bearish move.

Technical indicators and the rounded top pattern have flipped dominance in the market, suggesting bears are in control.

If the rounded top plays out and the bears break the 0.236 Fib level ($85,976), the Bitcoin price could continue to drop, with the next target and possible support area at the 200-day SMA ($56,543).

Ali Martinez, a popular crypto analyst on X, supports this bearish outlook, saying the Bitcoin price has dropped below the flag, suggesting BTC could fall to $70,000.

Conversely, if the bulls defend the 0.236 Fib level support, the next targets could be its ATH at $126,230 and $197,251 in the long term.