Bitcoin Withstands DeepSeek Dip And FOMC Volatility – How Close Is A New ATH?
In the past few days, Bitcoin (BTC) has withstood two key developments that could have derailed the cryptocurrency’s bullish momentum. Given Bitcoin’s resilience, analysts are now predicting a new BTC all-time high (ATH)...
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In the past few days, Bitcoin (BTC) has withstood two key developments that could have derailed the cryptocurrency’s bullish momentum. Given Bitcoin’s resilience, analysts are now predicting a new BTC all-time high (ATH) in the coming weeks.
Bitcoin Defies DeepSeek Sell-Off, FOMC UncertaintyEarlier this week, US stocks took a hit after Chinese AI firm DeepSeek unveiled its open-source LLM, raising concerns over the high market valuation of its American counterparts. As a result, the S&P 500 saw a strong sell-off, with NVIDIA leading the losses, dropping 16% in a single day.
Similarly, in its latest meeting, the Federal Open Market Committee (FOMC) left interest rates unchanged, in line with market expectations. While the hawkish stance was expected to deal another blow to crypto markets, BTC remained relatively unscathed after an initial dip.
At the time of writing, BTC is trading at $105,839, having essentially recouped all its losses from the DeepSeek-induced market crash. In fact, BTC has outperformed the S&P 500 over the past five days, surging 1.53%, compared to the latter’s 1.25% decline.
New BTC ATH In February?Seasoned crypto trader Pentoshi commented on BTC’s strength, saying that the digital asset has held up well despite the turmoil. The trader added that they see no reason why BTC shouldn’t hit a new ATH soon.
Another Bitcoin enthusiast, Castillo Trading, noted that Bitcoin’s price structure “looks flawless.” They added that both lower- and higher-time frames suggest that BTC will likely go higher.
In a similar vein, crypto trader and entrepreneur Michael van de Poppe said that the market will likely see a new BTC ATH in the ‘coming weeks,’ potentially hinting at February as the target month.
Further, crypto trader Roman shared the following chart, commenting that “Stoch & RSI have plenty of room to break $108,000 resistance and head higher.” They added that bullish divergence on BTC is also playing out nicely.
For the uninitiated, both Stochastic Oscillator (Stoch) and Relative-Strength Index (RSI) are momentum indicators that help traders identify whether the underlying asset is oversold or overbought in current market conditions.
While projections for a new BTC ATH may be focused on the short-term, market cycle peaks are expected to occur in the summer of 2025. For instance, a recent report by Bitfinex forecasts that BTC could surge to $200,000 by mid-2025, amid shallow price pullbacks.
Meanwhile DeepSeek predicts that BTC may top out between $500,000 and $600,000 by Q1 2026. At press time, BTC trades at $105,839, up 3.1% in the past 24 hours.
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This bitcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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