U.S. Approves Funding Bill, Temporarily Resolving Government Shutdown Crisis, Boosting Bitcoin Back to $76,000. However, analysts warn that over 40% of supply is currently in loss, and if a strong rebound does not occur, there is a risk of correction down to $60,000.
Funding Bill Passed, U.S. Government Shutdown Crisis Temporarily Resolved
The U.S. House of Representatives narrowly approved a funding bill, and once signed by President Donald Trump, the U.S. government will end partial shutdown and reopen.
Although lawmakers still need to negotiate funding for the Department of Homeland Security over the next week and a half, funding for other major government departments has been secured.
As the government shutdown crisis eases, market risk aversion has slightly decreased, providing a brief respite for Bitcoin, which has been declining over the past two days.
Bitcoin Rebounds from Drop, Tech Stocks and Cryptocurrencies Shake Together
Affected by overall economic uncertainty, Bitcoin ($BTC ) briefly fell to $72,800, the lowest since Trump’s victory in November 2024, and has since recovered to $76,441, but still down 3.25% for the day; Ethereum ($ETH ) is at $2,265, down 3.72% in 24 hours, with a total decline of 26% over the past week.
Although U.S. stock indices rebounded from their lows of the day, they still closed significantly lower, with the Nasdaq down 2% and the S&P 500 down 1.3%.
Image Source: CoinMarketCap Bitcoin ($BTC) briefly fell to $72,800, the lowest since Trump’s victory in November 2024
Latecomers Are Trapped, Analysts Warn of Correction Risks
Regarding the market’s future direction, according to multiple analysts quoted by foreign media, while there may be a short-term rebound, the overall structure still faces significant challenges.
Sean Rose, Customer Manager at blockchain data platform Glassnode, pointed out that Bitcoin has fallen about 30% in the past month, and currently 44% of Bitcoin supply is in loss, with the profit-taking supply ratio dropping from 78% to 56%.
This indicates that investors who bought at high points are now trapped, and their confidence and patience will be tested in the coming weeks. If the price cannot recover, these holders may continue to sell.
Benjamin Cowen, founder of Into The Cryptoverse, believes that the current market sentiment is very bearish, which often creates conditions for short-term countertrend rebounds.
Historically, when Bitcoin breaks below previous lows, it often triggers a short-term rebound. But he also warns that if Bitcoin cannot quickly and strongly rebound, this year could repeat the mid-term election bear market patterns of 2018 or 2022, making it a very tough year.
Additionally, Bitcoin’s Relative Strength Index (RSI) is currently hovering around the oversold zone of 30. The last time RSI hit this low was near the bottom of the 2022 bear market, after which Bitcoin fell another approximately 20%. Based on this trend, Bitcoin could risk dropping to $60,000.
Further Reading:
CZ refutes rumors of Binance selling Bitcoin! Analysts say the bear market is nearly over, bottom at $60,000
This article is compiled by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in training, so there may be logical biases or informational errors. Content is for reference only and should not be considered investment advice.
