Bitcoin threatened a new breakout to $61,000 on March 20, as analysis warned that support could "break."
Market data tracked another night of declines in BTC prices, which have so far reached a low of $60,760 on Bitstamp.
Now, BTC/USD is down 17.5% from its all-time highs, with several key contrarian factors continuing to put selling pressure.
These include outflows from U.S. bitcoin spot exchange-traded funds (ETFs) and the Federal Reserve's March 20 interest rate decision.
While the outcome of the Federal Open Market Committee (FOMC) meeting is almost certain , it is not until Fed Chairman Jerome Powell's subsequent comments that risky assets are under scrutiny.
"With less than 24 hours left until the Fed meeting, it is unlikely that the Fed will change interest rates tomorrow," wrote The Kobeissi Letter in its recent analysis on X (formerly Twitter).
"However, after recent events, all eyes will be on guidance. We maintain the view that it is far too early for a turnaround."
The latest estimates from the CME Group's FedWatch Tool indicate that the chances of a "pivot" - i.e., a return to interest rate cuts - are just 1% on March 20 and 9.1% at the next FOMC meeting in May.
