As a researcher with experience in the cryptocurrency market, I believe we are witnessing a new sell-off trend gaining momentum in the crypto market ahead of the upcoming Federal Open Market Committee (FOMC) meeting. The recent loss of support at $70,000 and $68,000 for Bitcoin price signals an extended trend to support highlighted at $66,000. This is a critical week for investors in both the equities and crypto markets as we await the FOMC decision and the Consumer Price Index (CPI) report from the Bureau of Labor Statistics.
Bitcoin Prognosis: The cryptocurrency market is witnessing a renewed downtrend prior to the June Federal Open Market Committee (FOMC) meeting. Having failed to hold above $70,000 last weekend and $68,000 on Tuesday, Bitcoin’s price now indicates a potential slide towards the support level at around $66,000.
As a researcher focused on financial markets, I’m excited to share that this week holds significant importance for investors in both equities and cryptocurrencies. The Federal Open Market Committee (FOMC) is scheduled to convene during regular US business hours on Tuesday. Furthermore, I look forward to the release of the Consumer Price Index (CPI) data by the Bureau of Labor Statistics (BLS), an event set to take place on Wednesday.
Digital assets other than Bitcoin are experiencing losses as well during this period of heightened market volatility. For instance, Ethereum has decreased by approximately 4% in the last 24 hours and around 6.5% over the past week. At present, its value is around $3,530.
The price of Binance Coin (BNB) is looking for a floor around $600 following its surge past $700 last week. Meanwhile, Solana seems to be searching for a buying zone at $150, having given up its prior bullish trend toward $200.
In summary, the overall crypto market capitalization has declined by more than 3% to reach approximately $2.58 trillion. The Bitcoin market share continues to lead at a dominance of 51.2%, while Ethereum follows closely with a 16.5% share based on the latest statistics from CoinGecko.
Crypto Market Awaits Fed’s Outlook On Interest Rate Cuts
The Federal Reserve’s two-day FOMC meeting is set to begin on Tuesday, concluding with a speech from Jerome Powell, who serves as the chairman of the central bank.
This month’s Federal Reserve meeting is unlikely to bring about a shift in interest rates. Nevertheless, analysts are eagerly awaiting the meeting for any indications of the Fed’s future monetary policy moves, with a strong expectation of their first rate reduction.
The Consumer Price Index (CPI) data, which is due for release on Wednesday, will reveal whether inflation is still decelerating. According to economic forecasts, the inflation rate is anticipated to be around 3.4%, identical to the figure recorded in April.
The Federal Reserve still has significant ground to cover before reaching its goal of 2% inflation. Experts anticipate that the first interest rate reduction may not occur until September.
Alternatively, in volatile markets such as cryptocurrency, investors may prefer to steer clear and opt for less risky options like bonds or treasury bills due to the market’s unpredictability.
A favorable Consumer Price Index (CPI) report may rekindle enthusiasm for cryptocurrencies, potentially enabling Bitcoin to surpass $70,000 and establish a new upward trend.
Bitcoin Price Forecast: What To Expect Ahead Of FOMC Decision
As an analyst, I observed Bitcoin struggling to break above several important markers and resistance levels on Tuesday. Among these were the breached ascending trend line support and various Exponential Moving Averages (EMAs), such as the 20-day EMA, the 50-day EMA, and the 200-day EMA.
As a crypto investor, I closely monitor the Relative Strength Index (RSI) to gauge market sentiment and identify potential trends. When the RSI drops into the oversold territory at 24, it suggests that bears have a strong grip on the market. However, this condition can also signal an imminent trend reversal. As the RSI starts to recover from the oversold zone, I would consider positioning myself for the anticipated bullish trend by carefully placing buy orders towards the bottom of the short-term correction.
As a researcher studying the Bitcoin market, I’ve observed that although the general trend seems to be heading downward, Bitcoin continues to defy this trend by holding onto support around $67,000. A push above $70,000 could signify the return of bullish sentiment, but for investors to experience a strong fear of missing out (FOMO), Bitcoin would need to break through the resistance level at $72,000 as indicated by the red band on the chart.
As a crypto investor, if Bitcoin fails to hold its ground above the $67,000 mark, there’s a good chance we could see further declines dipping below the $66,000 level. My analysis indicates that the price of Bitcoin might even reach as low as $64,000 under such circumstances.
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2024-06-11 16:36