Cryptocurrency markets are bouncing back as Bitcoin climbs above $64,000 from lows under $60,800. This recovery indicates that buyers are taking charge again, increasing the likelihood of Bitcoin reclaiming levels above $65,000.
The price of Bitcoin is fluctuating significantly before the FOMC meeting, making trading more careful. Investors seem to be taking a cautious approach ahead of the FOMC meeting. The upcoming decision by the Federal Reserve could have a significant impact on Bitcoin’s price and the overall cryptocurrency market, as investors are concerned about a potentially less favorable stance towards crypto due to US economic conditions and ongoing inflation.
Fed Rates and Bitcoin ETFs Affect Crypto Sentiment
The previous Federal Reserve rates posed challenges for the cryptocurrency space last week due to the US inflation rate exceeding expectations. Investors took a cautious approach, trimming risks in anticipation of the Fed meeting.
Flow into US-listed Bitcoin exchange-traded funds (ETFs) has been lackluster recently as investors adjusted their positions ahead of the Fed meeting. The subdued interest in Bitcoin ETFs reflects uncertainty in the market.
Speculation is rife that if the Federal Reserve adopts a more hawkish tone, it could dampen investor enthusiasm for cryptocurrencies. Such a scenario might exacerbate the ongoing market correction in the crypto space.
Bitcoin Price Rebounds Amid Market Turbulence
The Bitcoin price is currently showing signs of recovery after experiencing recent fluctuations, although it remains below previous levels. This reflects the ongoing turbulence in the broader market. Investors are exercising caution, particularly in anticipation of the upcoming Federal Reserve meeting. Concerns surrounding the potential for a less crypto-friendly policy stance and economic data are contributing to uncertainty in the crypto markets.
Source: TradingView
BTC Struggles to Break Key Resistance
Bitcoin’s price is making efforts to break into the crucial resistance zone ranging between $63,008 and $66,612. However, the technical indicators do not seem to support this upward movement. The Relative Strength Index (RSI) is approaching lower support levels, and the Directional Movement Index (DMI) is indicating a significant bearish signal, with the Average Directional Index (ADX) showing a bearish divergence. Consequently, all indicators suggest that the current upward trend may encounter resistance at interim highs. There is a possibility that the price could retreat below $60,000, followed by a substantial bullish rally.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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