The new week began with bitcoin (BTC) falling to its lowest level since June 21. The previous evening, the leading digital currency briefly dipped to $28,865.
On Tuesday, July 25, BTC rebounded to $29,253. IG Australia Pty analyst Tony Sycamore believes bitcoin could fall to $26,000 or even $25,000.
Only in this neighborhood is support expected to strengthen. If there is no further fall, the $25,000 mark will be the bottom for the cryptocurrency in the current cycle.
Investors will exit the cryptosphere and primarily bitcoin if the US Federal Reserve decides to raise the discount rate this week. Analysts are predicting it to rise by 25 basis points.
Caroline Mauron, co-founder of OrBit Markets, also does not rule out the weakening of the BTC rate in case the Fed tightens its monetary policy.
However, the same expert believes that the U.S. regulator may refrain from raising the rate on Wednesday.
If the Fed does leave the monetary policy unchanged, bitcoin will be able to withstand the pressure and maintain its position in the range of $29,000 to $30,000, said Caroline Mauron.