Eyes on the Fed – As the SEC recently attacked Binance and Coinbase, Coinbase is asking financial watchdogs to be clear about cryptocurrency regulation. However, the SEC has once again asked for time to respond to justice. Tonight, the FED (Federal Reserve) will have to report its decision on the rate hike. The price of Bitcoin is likely to experience volatility in the coming hours and days.
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Bitcoin price stagnates in 24 hours
Pending the Fed’s decision on the potential pause in rate hikesthe price of Bitcoin stagnates:
In one week, the price of Bitcoin climbs 4%. However, it is now three months that the price is moving around $26,000. The BTC/ETH pair drops slightly in 24 hoursbut she is 4% increase in one week. Can the FED allow BTC to regain color?
Could the FED’s decision help the price of Bitcoin?
At 8 p.m., the FED will indicate its decision on possible pause in rate hike. According to data from the CME FedWatch Tool, odds point to a pause in rate hikes :
Indeed, operators are very largely oriented towards a rates maintained at 5.00%-5.25%. If this decision is confirmed, the markets could benefit from it, because it is what is expected by the operators. However, THE financial markets could remain in uncertainty in the event of a break. In fact, the FED could still decide to release a layer in July or even later. J. Powell’s speech will be important, because it will certainly give clues about what happened next.
While waiting for the FED, the price of Bitcoin is contracting
There volatility is falling for a few days. We note that the price of Bitcoin contractsthe troughs are ascending and the peaks are descending:
The price remains in indecision, it evolves around $26,000 for a few days. In the event of a fall, the price could find buyers at the level of the bracket at $25,000. In the event of a rebound, the sellers could show themselves at the level of the resistance at $26,700. Whatever happens, the buyers aim to retake the resistance level at $26,700, and close above $27,400. For its part, the RSI continues to evolve upwards, it should develop above 62 so that the buyers benefit from momentum short term.
According to CME Group’s Fedwatch Barometer, operators are betting on a pause in rate hikes. However, the FED has the option to take a break here, but continue to hike rates in July. Let’s hope that J. Powell’s speech will convince investors. For its part, the price of Bitcoin is contracting. Need to retake the level at $26,700 to avoid a drop to the next support level at $25,000.
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