The crypto market just wiped out $42 billion in market cap in 24 hours, pulling Bitcoin back towards the psychological threshold of $110,000. However, some altcoins like Pump.fun are up 16%, showing an unusual market dynamic. This divergence follows the Fed's interest rate decision, creating a complex macroeconomic context for crypto investors.
The crypto market and BTC are currently experiencing a volatile consolidation phase, oscillating around $111,300 after briefly testing the critical zone of $108,000. This level represents much more than a simple round number: it constitutes a major technical support that has already repelled several bearish breakout attempts in recent weeks.
Analysis of the RSI (Relative Strength Index) reveals a concerning signal. The indicator has just dropped below the neutral line of 50 points, suggesting a progressive shift toward a bearish sentiment. Historically, when Bitcoin’s RSI crosses this threshold during periods of increased volatility, the price tends to seek lower support levels.
For now, Bitcoin has bounced well off its support, but will need to reclaim and maintain $112,000 to reassure investors.
The 25 basis point reduction in interest rates by the Federal Reserve should theoretically favor risk assets like Bitcoin. This accommodative monetary policy makes the opportunity cost of holding cryptocurrencies lower compared to government bonds. However, the market seems to be adopting a wait-and-see approach, probably due to persistent uncertainties about inflation and future monetary policy decisions.
If BTC manages to firmly defend the $110,000 threshold and regain momentum, a technical rebound could project the price beyond $112,500, paving the way toward $115,000. However, this scenario would require a massive return of institutional buyers and an improvement in on-chain indicators such as transaction volume and whale activity.
The global crypto market capitalization now stands at $3.71 trillion, representing a contraction of $42 billion within 24 hours. This correction doesn’t necessarily reflect widespread panic, but rather a strategic repositioning of investors following the Fed’s announcement.
The level of $3.67 trillion represents the immediate support to watch. A clear break below this threshold would likely trigger cascade selling via automated stop-loss orders, mechanically amplifying the decline. Conversely, a rebound above $3.73 trillion would give the market some breathing room and could catalyze a movement toward $3.81 trillion.
The interesting element in this correction lies in the behavioral divergence between Bitcoin and certain altcoins. While the market leader corrects, tokens like Pump.fun recorded double-digit gains yesterday, suggesting a sectoral rotation of capital rather than a generalized exit from the crypto market. This dynamic recalls the early stages of previous alt seasons, where investors temporarily abandon Bitcoin to chase more aggressive gains on smaller-cap projects.
On the other hand, HYPE is showing remarkable resilience and is approaching a breakout of its $50 resistance.
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In this generally bearish context, Pump.fun stands out with a remarkable performance of 16% over 24 hours, bringing its price to $0.00534. This independent trajectory relative to Bitcoin perfectly illustrates the concept of temporary decorrelation that altcoin traders actively seek.
Technical analysis of PUMP shows an imminent breakthrough of the resistance at $0.00563. Confirmation above this level with significant volume would mathematically open the path toward $0.00622, representing an additional potential of 16% from current levels. Momentum indicators such as MACD and RSI on the 4H timeframe remain in bullish territory, supporting this hypothesis.
However, a bearish divergence is beginning to appear on the 4H chart. A sharp reversal could bring PUMP back to the support level of $0.00460, erasing all recent gains. Nevertheless, it has moved into the upper band of its FBB. A break of the support at $0.45 would invalidate the momentum.
This performance by Pump.fun is part of a broader movement observed across several mid-cap altcoins, suggesting that investors are repositioning their portfolios in anticipation of a potential alt season. Historically, these phases begin when Bitcoin enters consolidation after establishing new highs, thereby releasing liquidity for the rest of the market.
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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