Bitcoin Dip Deepens: Fed Rate Cut Signals More Pain Ahead

Bitcoin on-chain reports show some possibility of further downfall even as the Fed cuts the rate three times in a row. Realized losses are currently above historic lows.

Bitcoin has a possibility of further correction. The Federal Reserve reduced rates once more. On-chain data identifies that the cryptocurrency is yet to experience maximum pain.

Source:  Eric Daugherty 

On Wednesday, the Fed declared a third consecutive reduction in the rate. The interest rates fell by 0.25 to 3.5-3.75. Trump appointee Stephen Miran voted against it, according to Eric Daugherty on X. Instead, he desired a bigger reduction of 0.50.

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Historical Loss Patterns Point to Further Downside

The on-chain figures of Bitcoin indicate that there is still more to drop. Ali Charts emphasized on X that realized losses are at -18%. The analyst said that a strong buy-the-dip opportunity has historically been seen below -37%. Such a gap shows that Bitcoin is not at its bottom yet.

Source: Ali Charts

Realized losses- These are real losses traders make when selling. The measure is not similar to paper losses on held positions. Reduced readings normally indicate capitulations. Such periods are usually good entry points for long-term investors.

Rate Cuts Haven’t Sparked Crypto Rally

Fed monetary easing is ongoing as it has made three consecutive cuts. Risk assets such as Bitcoin are expected to be supported in the markets. Nevertheless, the cryptocurrency is under strain. The conventional safe havens have outgrown digital assets in the recent past.

Daugherty pointed out to X that this policy change was predicted by President Trump and Scott Besent. The dissident vote demonstrates internal confusion regarding the scale of cuts. Markets are looking at further cuts as far as 2026.

Bitcoin is trading at the support levels, which are lower even with lenient monetary policy. The failure to connect leaves people in the market puzzled. Others describe it as a sign of weakness to take profit following old winnings. Others cite regulatory uncertainty as a burden on sentiment.

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Traders Eye Historical Bottom Signals

On-chain information is an essential background to existing price movement. The realistic loss threshold of -37% is excessive selling pressure. Bitcoin has, in the past, performed very well after reaching these levels. Existing readings indicate that traders are not giving up.

The analysis by Ali Charts is based on several market cycles. The trend has been maintained across different market conditions. This measure is used by investors to determine high-probability entry areas. The present -18% is a sign that there may be negative prospects left.

There are mixed signals in the market structure over time. The short holders are mounting pressure to sell. The long-term holders will keep on accumulating at the present price. This deviation brings volatility as various cohorts fight.

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