UPDATE: Bitcoin has just plunged to $113,000 as the S&P 500 reaches a new all-time high, sending shockwaves through the crypto market. This sudden drop comes just ahead of the Federal Reserve’s anticipated interest-rate decision, creating a distinct divergence between cryptocurrency and traditional stocks.
As markets await the announcement from Fed Chair Jerome Powell, Bitcoin has retraced from local highs of $116,000, diminishing hopes for a bullish breakout. Analysts are now setting their sights on crucial price targets, with $111,000 marking a significant support level, while a weekly close above $114,500 could signal renewed optimism.
Prominent trader Daan Crypto Trades highlighted the importance of the 200-period EMA on four-hour time frames, currently positioned around $113,100. “BTC is still in the range. $116,000 was rejected twice now, and the price has moved back down closer to its large volume node around $111,000,” he stated, emphasizing the critical range boundaries at $116,000 and $107,000.
In a report released earlier today, QCP Capital suggested that the upcoming FOMC meeting is likely to be a “non-event” for crypto markets. The anticipated 25 basis point rate cut aligns with previous forecasts, and Powell is expected to refrain from providing new guidance, leaving traders in a state of uncertainty.
“The absence of official data since the U.S. government shutdown leaves the Fed effectively flying blind. Without inflation or labor prints, any policy recalibration would be premature,” QCP Capital stated in their latest analysis.
As Bitcoin remains under pressure, traders are left to ponder the implications of the Fed’s decision, especially with the potential for a rate cut to influence market sentiment. The current volatility highlights the unique challenges faced by cryptocurrencies compared to traditional equities.
Looking ahead, all eyes will be on the Fed’s announcement scheduled for later today. With the market on edge, analysts urge caution as the outcome could significantly impact Bitcoin’s trajectory. Will it rebound as traders hope, or will it continue to slide?
The crypto community is bracing for further developments, and the potential repercussions of the Fed’s decision are palpable. Stay tuned for the latest updates as this situation unfolds.
