- Bitcoin failed to break AVWAP resistance, triggering rapid price decline
- BTC trades below $71,000 with $69,100 key support in focus
- Major tokens dropped 5–6% ahead of the Federal Reserve announcement
Bitcoin dropped sharply after failing to break above the AVWAP resistance level, triggering a quick sell-off across major cryptocurrencies. The move pushed BTC below $71,000 after briefly touching $76,000, highlighting market volatility. Ethereum, Solana, and Dogecoin also declined between 5% and 6%.
AVWAP Resistance Holds, Bitcoin Falls Quickly
Bitcoin failed to sustain gains above the AVWAP resistance level. The rejection caused a sharp decline, with BTC moving below $71,000. The swift drop exceeded market expectations and prompted caution among traders.
Ethereum, Solana, and Dogecoin mirrored Bitcoin’s movement, falling between 5% and 6% as investors adjusted positions. Trading volumes suggest heightened volatility in the market during the sell-off. The GMCI 30 index fell about 5%, reflecting losses across the largest cryptocurrencies by market capitalization.
Bitcoin briefly touched $76,000 before the drop, demonstrating resistance at prior range highs. The reclaim of the range made short positions more attractive, but the speed and scale surprised some participants.
Federal Reserve Announcement Influences Cryptocurrency Movements
Much of the recent drop unfolded ahead of the Federal Reserve policy decision. The Fed maintained the federal funds rate at 3.5% to 3.75%, as widely expected by markets. Chair Jerome Powell emphasized inflation remains elevated and cited potential impacts from rising energy prices due to Middle East tensions.
Futures markets had largely priced in a pause, with over 99% probability of no change according to CME FedWatch data. Despite this, Bitcoin reacted sharply, showing sensitivity to broader macroeconomic signals and market sentiment.
Rising energy costs and geopolitical factors may influence inflation trends, which in turn affect investor behavior in cryptocurrencies. Traders continue monitoring technical levels and macro updates, as Bitcoin remains under pressure below $71,000.
Disclaimer:Â This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
