Bitcoin Sentiment Slides as Market Dips: Why Bearish Odds Are Now Increasing

Core Insights - Bitcoin experienced a significant decline, dropping to as low as $110,000, a 3% decrease following Federal Reserve Chair Jerome Powell's comments regarding the uncertainty of a December rate cut [1][2] - Despite the anticipated rate cut of 0.25%, Bitcoin and other cryptocurrencies fell due to Powell's hawkish remarks, indicating a more cautious market sentiment [2][4] - Sentiment on prediction markets for Bitcoin has also decreased sharply, with the likelihood of Bitcoin rising to $120,000 dropping from 75% to 58% [3] Market Reactions - The sell-off in Bitcoin is attributed to a combination of "sell the news" behavior and Powell's hawkish statements, rather than the rate cut itself [4] - Institutional investment remains strong, with Bitcoin ETFs seeing net inflows of $202.48 million on October 28, totaling $62.3 billion in cumulative net inflows [5] Technical Analysis - Bitcoin's price opened at $112,925 and fell to a low of $109,265, indicating strong selling pressure [6] - The Relative Strength Index (RSI) for Bitcoin is at 44.87, suggesting a neutral zone with a slight bearish tilt, while the four-hour chart shows an RSI of 36.38, indicating increasing selling pressure [7][8]