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Investing.com – The continues to falter on Wednesday morning as traders around the world and in all markets anxiously await a potentially game-changing Fed meeting.
Recall that the posted gains yesterday, decorrelating from stocks which fell sharply, but the impact on the crypto remained limited.
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As seen on the chart below, it is now possible to draw a triangle of indecision on the daily chart.
We also note that Bitcoin is back above its 50-day MA, which has been tested several times this week after stopping the corrections of BTC last week.
As for the important thresholds, a break below $28,000 would be equivalent to an exit from the bottom of the triangle and would therefore constitute a negative signal, which would put the next potential support in sight around $27,000.
On the upside, the major psychological threshold of $30,000 is the first significant hurdle, before the 2023 high on April 14, a few dollars from the psychological threshold of $31,000.
The fate of Bitcoin will depend on the Fed meeting this Wednesday
When it comes to this Wednesday’s schedule, most crypto traders’ attention will be focused on tonight’s Fed meeting, for which a 0.25% rate hike is widely expected, Fed Barometer Investing.com indicating a probability of more than 85% for this outcome.
It is therefore arguably not the Fed’s decision that will most influence BTC/USD and the markets in general, but rather the clues that the central bank will provide regarding its next decisions. For now, the market is very much banking on a pause in rate hikes for the next meeting.
If the FOMC meeting on Wednesday evening confirms this outlook, we should expect a bullish impact on the price of Bitcoin. If, on the contrary, the Fed is firm and leaves the door open for another rate hike in June, cryptocurrencies should fall.