Journalist
Posted:
Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- BTC continued to defend the low in the $25.8k range.
- The Fed’s September 20 decision could lead to some volatility.
Interest rate traders are eagerly preparing to take advantage of this Bitcoin [BTC] price fluctuations ahead of the FOMC (Federal Open Market Committee) meeting on September 20. Market volatility is expected before and after the Fed rate announcement.
Is your portfolio green? look at the BTC profit calculator
About 90% of traders surveyed were leaning toward an unchanged Fed rate target of 5.25% – 5.5%. So a repeat of June’s price action cannot be overruled if the Fed pauses the rate hike.
BTC staged an impressive recovery in mid-June after the Fed paused rate hikes, in addition to the hype surrounding exchange-traded fund (ETF) filings from BlackRock and other companies.
What’s next for BTC price action?
Source: BTC/USDT on TradingView
After the mid-August dump, BTC price action was muted near the low of $25.8k. The 6% increase on August 29 was driven by Grayscale’s win over the US SEC. But the victory was short-lived, leaving BTC exposed to a pullback to the lower range once again.
The withdrawal created a price imbalance between $26.1k and $27.0k (white). Additionally, the price action was below the 50-EMA (Exponential Moving Average) and could act as a dynamic resistance ahead of the Fed’s decision. Thus, BTC could try to fill the price imbalance and retest the mid-range around $27,000 if the Fed’s decision is favorable.
Conversely, sellers could gain more leverage if they crack the daily bullish order block (OB) of $24.8k – $26k (cyan). Such a move could taper off at the next support and weekly bullish OB of $21.4k – $23.45k (cyan).
Meanwhile, the RSI has struggled to break above 50 since mid-July, reinforcing weakened buying pressure. The CMF also followed the trend of the RSI, but rose above zero on September 4, indicating that capital inflows into the BTC market have improved over the past week.
How many Worth 1,10,100 BTC today?
Huge buy and sell limit orders of $25,000 and $28,000
Source: Mobchart
According to Mobchart, a real-time order tracking platform, significant buy and sell limit orders were placed at $25,000 and $28,000 respectively at the time of writing. It shows that BTC’s wild price swings at these levels could trigger a reversal.
However, Ethereum [ETH] could outperform BTC in the short to medium term ETH ETF In the US, approval is expected as early as October.