The market is waiting for the FED – The financial markets are waiting for the FED meeting. With the current banking crisis, the markets are oriented towards a rise of 25 basis points. Could the Fed decide to raise rates for the last time? Meanwhile, Bitcoin price is moving above $28,000.
This Bitcoin price analysis is brought to you in collaboration with CryptoTrader and its algorithmic trading solution finally accessible to individuals.
Bitcoin price drops 1% in 24 hours
Bitcoin slightly falling before the Fed meeting. Indeed, the price of Bitcoin is in 1% drop in 24 hoursand of 5% in one week :
For now, the BTC price can’t get back past the psychological zone at $30,000. The price remains up 18% in three monthsand of 34% in six months. The BTC/ETH pair stagnates in 24 hours and in a week.
What will be the impacts of the FED on the price of Bitcoin?
A few hours before the decision, the market expects a rise of 25 basis points :
Concretely, here three of the different possible decisionsand their potential impact regarding the price of Bitcoin:
- Status quo : the banking sector is fragile, the FED could decide to stop sooner than expected. Such a choice would be surprisingand risky assets like Bitcoin and the US market could benefit.
- 25 bps rise with “Dovish” speech : this would indicate the choice of fight inflationbut to announce to the operators that it would be the last rise before a break. The market expects this decision, especially with the fragility on the side of the banking sector. In this case, Bitcoin price could benefit.
- 25 bps rise with “Hawkish” speech : this would show a real desire to fight inflation. The financial markets could be surprised, Bitcoin and the US market could then fall.
I’uncertainty is present in the financial markets awaiting this meeting. Whatever happens, there should be volatility.
The price of Bitcoin must break the bearish trendline in 4H
BTC is struggling to cross the bearish trendlinethe FED meeting could give the direction of the king of cryptocurrencies:
If the price of BTC manages to break the bearish trendlineof the bullish volatility could be set up. In this case, a return to the level of the resistance at $30,500 is quite possible. It will be necessary to break this resistance on the side of the bulls. On the other hand, if the price blocks at the level of the downward trendline, the price could return to the level of the rack at $27,500. In the event of a more severe fall, the area to $26,700 could act as support.
The RSI has the opportunity to regain momentum with ascending lows and highs if it develops above 51. In this case, the buyers would regain control of the momentum.
Traders await the FED meeting, and expect a rate hike of 25 basis points. Bitcoin could take advantage of this decision to start an uptrend. For this, it will be necessary to break the bearish trendline and break the resistance at $30,500.
Do you want to delegate the trading of some of your cryptocurrencies? Through his optimized trading serviceCryptoTrader allows you to maximize your profits in a simple, diversified and fully automated way.