The BTCUSD pair may retarget the $26,000 handle that triggered a bounce in late September
Bitcoin has been losing ground since late last week to see a solid selling pressure during the previous session. Adding to an earlier decline, the minutes from the Fed’s September meeting suggested that a rate hike is possible before the year ends. Besides, all members agreed that interest rates should stay restrictive for some time. Earlier, the sentiment was hurt by concerns about the conflict between Israel and Hamas.
A failure to hold above the $28,000 figure earlier in the month attracted renewed selling pressure that resulted in a five-day rout that continues on Thursday. In the process, the BTCUSD pair derailed the $27,000 level to register two-week lows in the $26,500 area that capped the decline in previous trading session.
After a modest bounce, the coin remains on the defensive on Thursday, deciding on further direction. Now, the $27,000 handle represents the initial bullish target, followed by the $27,300 zone and the $28,000 key barrier.
Should the largest cryptocurrency by market capitalization hold above the $26,500 support zone in the near term, a deeper retreat could be expected. In this scenario, the BTCUSD pair may retarget the $26,000 handle that triggered a bounce in late September.
The question now is if dips are attractive for investors, considering the persisting uncertainty in the crypto space. In industry news, the ESMA said that DeFi is not yet a meaningful risk to financial stability. In particular, the regulator laid out the benefits and risks of DeFi but concluded it’s not a threat due to its small size and lack of correlation with other financial markets.
In the near term, BTC needs to get back above $27,000 in order to avoid another retreat towards the mentioned danger zone. In a wider picture, crypto enthusiasts continue to target the $30,000 psychological level last seen two months ago.