Bitcoin price analysis reveals that buyers are at a disadvantage. Price rose after a weaker opening and tested the session high of $24,448.40. However, it quickly reversed course and tested the pivotal 21-day exponential moving average, where it currently rests.
The market action now suggests that the bulls are running out near the higher levels and that the bears are clearing the way for more correction. The 24-hour trading volume of the largest cryptocurrency is $30,603,898,759, up 7%. BTC/USD, however, currently reads at $23,422.79, a 1.85% daily decline.
BTC/USD trades at $23k. Source: TradingView
The longer the price stays below this level, the more powerful the selling pressure will be when 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% daily and reached $23,325.
Hours before the Federal Open Market Committee (FOMC) was scheduled to release minutes from its most recent meeting, the pair, which had already begun to show signs of weakness, eased as trading in US stocks began.
Despite not having a rate decision, the meeting was timed to reveal the Fed’s outlook on the next rate adjustment scheduled for September.
Michaël van de Poppe summarized in his latest Twitter update:
“The important event tonight with the FOMC minutes, through which you can get information whether the FED will be accommodative or dovish. I don’t think it will have a massive impact, however, crypto tends to give it a lot of value and, therefore, a lot of volatility.”
Marcus Sotiriou, an analyst at UK-based digital trader GlobalBlock, believes a clearer picture may emerge later on Wednesday in relation to the FOMC minutes.
“Bitcoin volatility has eased over the past week or so, however sellers have prevailed as there is uncertainty surrounding FOMC minutes released tonight. The minutes will give an indication of the Federal Reserve’s stance and when they may begin to slow the pace of rates .
The US Federal Reserve recently increased interest rates by 0.75%, but monthly inflation readings were lower than expected. 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 major test in the coming days because the 200-week moving average, which is currently 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 further downside in the coming weeks and that the market reversal may be delayed.”
Another crypto analyst and trader @EtherNasyonyaL, however, believes the opposite – that Bitcoin is currently in a historic buy zone. The analyst believes that now is the best time to invest in Bitcoin as the asset is expected to increase in value in the future.
Featured image from Getty images, charts from TradingView.com