Bitcoin Bull Trap? Powell’s Dovishness Fades as Bears Strike Back

Following Powell’s presser yesterday morning, Bitcoin and the broader crypto market enjoyed healthy gains, seemingly turning a corner. The dovish tone from Powell appeared to be the break Bitcoin needed to flip bullish, with BTC surging back above $87K and finally breaking out of its consolidation range. Many altcoins followed suit, rallying over 10%.

However, the move turned out to be a bull trap. Bears swiftly regained control, sending Bitcoin back into its previous range, now trading around $84K once again.

Adding to the market’s volatility, Trump spoke last night at the Digital Asset Summit, sparking speculation that he might announce zero capital gains tax on certain cryptocurrencies or offer a favourable stance on a US Bitcoin reserve. Investors were left disappointed as neither materialised, leading to further market declines.

Now back within the consolidation range it spent over 10 days attempting to break, Bitcoin’s bullish momentum is fading. The latest lower high on the daily timeframe further strengthens the bearish case. With no major macro or crypto catalysts left this month, we can expect the market to play out naturally—assuming no surprise tariff changes or ceasefire announcements shift sentiment. Given the current bearish structure, risk-off behaviour could push Bitcoin back below $80K…

In other news, the first Solana ETF has launched in the United States, providing institutional investors with exposure to SOL. However, the launch has had little impact on SOL’s price, which has followed broader market trends and is currently down 6% on the day.

XRP is currently pulling back after an almost 12% gain the previous day and is now down 4.4%. It is testing both the middle of its broader consolidation range and the 55 EMA. If XRP can hold these support levels, the bullish structure remains intact, and momentum could push it back to retest the top of the range in the coming weeks. However, if it fails to hold and drops below the middle of the range, it risks invalidating the newly formed bullish structure, potentially leading to a move back towards the bottom of the range instead.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

Disclaimer

All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.