The market is waiting for the FED – The financial markets are present at the FED meeting. With the current banking crisis, the markets are moving more than a house with a base of 25 points. Could the Fed decide to raise rates for the last time? Meanwhile, Bitcoin price is moving above $28,000.
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Bitcoin price drops 1% in 24 hours
bitcoins pulled slightly before the Fed meeting. Indeed, the price of Bitcoin is in 1% discount in 24 hoursand of 5% in one week :
For now, the BTC price can’t get back past the $30,000 zone psychologist. The price remains up 18% in three monthsand of 34% in six months. The BTC/ETH pair stagnate in 24 hours and in a week.
What are the impacts of the FED on the price of Bitcoin?
A few hours before the decision, the market witnessed a rise of 25 fundamental points :
Concretely, here three different possible decisionsand their impact potential regarding bitcoin prices:
- 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 against inflationbut to announce to the operators that it would be the last house 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 It is present in the financial markets that attend this meeting. Whatever happens, it should and have volatility.
The price of Bitcoin must break the bearish trendline in 4H
BTC struggles to franchise the bearish trendthe FED meeting could give the direction of the king of cryptocurrencies:
If the price of BTC manages to break the bearish trendof the bullish volatility could get in place. 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 stops at the level of the downtrend line, the price could return to the level of the support 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.
The operators attend the FED meeting, and attend a rise in base rates of 25 points. Bitcoin could take advantage of this decision to start an uptrend. For that, it will be necessary to break the bearish trend and break the resistance at $30,500.
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