A pricing analysis of bitcoin reveals that buyers are at a disadvantage. Price increased after a weaker opening and tested the session high of $24,448.40. However, it swiftly reversed course and tested the pivotal 21-day exponential moving average, where it is currently resting.
The market action right now suggests that the bulls are running out of steam close to the higher levels and that the bears are clearing the way for more correction. The largest cryptocurrency’s 24-hour trading volume is $30,603,898,759, up more than 7%. BTC/USD, however, is currently reading at $23,422.79, a 1.85% daily decline.
BTC/USD trades at $23k. Source: TradingView
The longer the price remains below this level, the more powerful the selling pressure will be as BTC slips below the crucial support level of $23,500.
FOMC Meeting Crushes Bitcoin Price
Data from TradingView showed that BTC/USD fell by more than 2% every day and reached $23,325.
Hours before the Federal Open Markets Committee (FOMC) was scheduled to release minutes from its most recent meeting, the pair, which had already started to exhibit indications of weakness, fell further as trading in US stocks got underway.
Despite not having a rate decision, the meeting was timed to reveal the Fed’s perspective on the upcoming rate adjustment scheduled in September.
Michaël van de Poppe summarized in his latest Twitter update:
“The important event tonight with the FOMC minutes, through which information can be received whether the FED is going to be hawkish or dovish. I don’t think it will have a massive impact, however, crypto tends to give it a ton of value and, therefore, lots of volatility.”
Marcus Sotiriou, an analyst at the UK-based digital asset dealer GlobalBlock, believes a clearer picture may become apparent later on Wednesday in relation to the FOMC minutes.
“Bitcoin’s volatility has fallen over the past week or so, yet sellers have been dominant, as there is uncertainty around FOMC minutes being released this evening. The minutes will give an indication of the Federal Reserve’s stance and when they may begin to slow the pace of rate hikes.”
The US Federal Reserve recently increased interest rates by 0.75%, but month-over-month inflation readings were lower than anticipated. Can the FOMC’s remarks boost Bitcoin (BTC) and the larger crypto market at the right time?
According to Sotiriou’s note to clients:
“According to technical analysis, Bitcoin will face a significant test in the coming days because the 200 weekly moving average, which is currently at around $23,000, is just below the current price of $23,700. If this level cannot be maintained, it will imply that there will be additional downside in the coming weeks and that the market’s reversal may be delayed.”
Another crypto analyst and trader @EtherNasyonaL, however, believes the opposite – that Bitcoin is currently in a historic purchasing zone. The analyst thinks that right now is the best time to invest in Bitcoin because the asset is expected to increase in value in the future.
Featured image from Getty images, charts from TradingView.com