Bitcoin’s months-long upward momentum showed fresh signs of fatigue early Wednesday, despite a robust rally on Wall Street, fueled by investor optimism ahead of Nvidia’s (NVDA) highly anticipated earnings report.
At this writing, the major cryptocurrency was near $108,900, just above the low point of a significant bouncing support line that it has climbed on since April, as indicated by Coingecko. If the market breaks clearly below this line, analysts expect the start of a bearish trend, as sellers have been gathering below this level.
Bitcoin Momentum Weakens Despite Bullish News
Jordan Case stated that strong demand in the market is often signaled by bullish trendlines. The withdrawal of this support suggest that momentum could slow and the recent top prices might not be maintained.
The continued sluggishness of Bitcoin is surprising, given the strong positive developments it has seen. Stablecoin giant Circle made a public announcement to seek a public offering and Trump Media revealed plans to spend $2.5 billion buying Bitcoin as their crypto strategy. Even so, these factors have not helped much in boosting returns for the market.
The mood grew more cautious as Glassnode pointed out a different approach among Bitcoin’s largest investors. At the time of writing, wallets with more than 10,000 BTC have started showing a “net distribution” trend, at a rate of 0.3 per day.
Trump Tariff Delay May Ease Fed Fears
The largest wallet holders are now shifting their bitcoin which marks a shift in their position, Glassnode said on X. Overall, habits of buying stocks are still strong, suggesting that there is still broad bullish momentum.
Wall Street is waiting for the release of minutes from the Federal Reserve’s last policy meeting, due after the market closes on Wednesday. The Fed didn’t raise rates this month, though Chair Jerome Powell highlighted rising concerns about inflation and said President Donald Trump’s trade policies were a significant factor contributing to them.
Many people on Wall Street were surprised when Powell mentioned “stagflation” at the post-meeting press conference. Yet, Trump’s announcement to hold off on some tariffs could soften the market’s response to anything hawkish in the minutes.
Nvidia Earnings May Drive Bitcoin Higher
Many investors are keeping an eye on Nvidia. The AI company, with a share price that moved closely with Bitcoin in the past few months, reports earnings today. Wall Street currently expects NVIDIA to report strong growth, thanks to its key role in AI hardware and infrastructure.
Nvidia delivering better earnings than expected could lift Bitcoin and other cryptocurrencies, according to analyst Melissa Ong. AI and digital assets are considered linked topics in the broad market, mainly due to institutional investors pursuing success in both areas.
Bitcoin’s Bullish Drivers Clash with Market Reality
Despite strong tailwinds like Trump Media’s $2.5 billion Bitcoin investment plan and Circle’s IPO ambitions, Bitcoin’s price momentum is showing cracks. Analysts warn that a break below this line could trigger a bearish reversal. While Wall Street remains hopeful ahead of Nvidia’s earnings, on-chain data from Glassnode reveals net distribution by whale wallets, hinting at growing caution beneath the surface.
Conclusion: Bitcoin Walks a Tightrope Amid Mixed Signals
Bitcoin’s recent price action reflects a market caught between optimism and hesitation. While institutional moves like Trump Media’s Bitcoin treasury and Nvidia’s AI-driven momentum offer bullish undercurrents, weakening technical support and whale selloffs signal caution.
As Wall Street eyes the Fed minutes and Nvidia’s earnings report, Bitcoin stands at a crossroads, and what happens next could shape the trajectory of not just BTC, but the broader crypto market in the days ahead.
Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!
Advertisement Banner
FAQs
What is causing Bitcoin’s momentum to weaken?
Bitcoin’s price is losing momentum despite bullish macro news due to selling pressure from large holders and weakening support at key technical levels.
Why is the $108,900 level important for Bitcoin?
This level aligns with a key trendline Bitcoin has respected since April. A break below it could signal the beginning of a bearish trend.
Did Trump Media’s Bitcoin investment affect the market?
Trump Media’s plan to buy $2.5 billion in Bitcoin showed strong institutional interest, but it hasn’t significantly lifted market sentiment due to broader risk concerns.
What is the significance of Nvidia’s earnings for Bitcoin?
Nvidia’s earnings could boost Bitcoin due to their correlated performance. Positive AI-sector momentum often spills into crypto markets.
What does Glassnode’s report about whale wallets mean?
Glassnode reported that wallets holding over 10,000 BTC are in net distribution mode, indicating that large investors may be taking profits or preparing for a downturn.
Glossary of Key Terms
Support Line
A price level where demand historically outweighs selling, causing price to bounce. Breaking below it may signal a downtrend.
Bullish Momentum
Market behavior where prices are rising or expected to rise, often supported by strong investor sentiment or positive news.
Whale Wallet
A crypto wallet holding a large amount of a token, in this case, more than 10,000 BTC, can significantly influence price movements.
Net Distribution
A pattern where more assets are being sold than accumulated, often suggesting bearish sentiment among large investors.
Ichimoku Cloud
A technical indicator used to gauge momentum and support/resistance. If an asset stays above the cloud, it’s generally considered bullish.
Stagflation
An economic scenario combining slow growth and high inflation, which complicates central bank policies and impacts investor sentiment.
Federal Reserve Minutes
The written record of the U.S. Federal Reserve’s policy meeting. Investors analyze it for insights into interest rate decisions and inflation expectations.
References
The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
For advertising inquiries, please email . [email protected] or Telegram
