The cryptocurrency market is recovering as the price of Bitcoin has recovered the important level above $64,000 after hitting lows below $60,800. This significant recovery suggests that the bulls are regaining control, which could make the price’s chances of regaining lost levels above $65,000 more pronounced.
BTC price is experiencing quite a bit of volatility ahead of the FOMC, making trading more cautious at the moment. Investors appear to be playing it safe ahead of the FOMC meeting. The upcoming FED decision could be a huge problem for the price of BTC and the overall cryptocurrency space as investors fear a less cryptocurrency-friendly stance due to US economic data and persistent inflation.
Previous Fed interest rates have not been friendly to the cryptocurrency market, with US inflation rates running hotter than expected last week. Along with this, inflows into US-listed Bitcoin ETFs have been disappointing these days as investors have reduced risk ahead of the Federal Reserve meeting. Therefore, there is speculation that a more hawkish stance from the Federal Reserve could weaken investor appetite for cryptocurrencies, prolonging the current market correction.
FOMC Impact on BTC Price
Bitcoin prices are currently rebounding, but are still somewhat bearish, reflecting the turmoil in border markets. Meanwhile, investors are also showing caution ahead of the Federal Reserve meeting. This is mainly because policy positions that are less friendly to cryptocurrencies and concerns about economic data are causing uncertainty in the cryptocurrency market.
BTC price is trying hard to enter the key resistance area between $63,008 and $66,612, but technicals do not seem to favor this move. RSI is heading towards lower support, DMI is also flashing a massive bearish signal and ADX is showing a bearish divergence. So, all indicators point to the current uptrend possibly trapping the bulls in an intermediate high. The price appears to be pre-programmed to fall below $60,000, which could be followed by a large bullish order.