Bitcoin price may see sharp moves in the coming days due to several upcoming macroeconomic events.
Don’t miss these dates next week for Bitcoin
Experts predict that the next week could be critical for the crypto market as the Fed rate decision potentially impacts the price of Bitcoin. The next Fed rate decision meeting will be held on July 25-26. The critical interest rate decision will be made on July 26 at 21:00.
Recently, Bitcoin price witnessed high volatility in a narrow range. Meanwhile, it broke below the critical $30,000 and $31,000 levels. It even touched the critical support level of $29,5,000 at one point. These ignited the fear of a great collapse. As the Fed’s interest rate decision and the expiration of a major options contract approach, the market is anxiously awaiting whether these events will disrupt the current consolidation.
According to CME Group, financial experts predict a 92% probability that the central bank will raise interest rates by a quarter point on July 26. If the Federal Open Market Committee (FOMC) meets these expectations, it could increase the federal fund’s target range to between 5.25% and 5.5%, a level not seen in almost 22 years.
Robert F Kennedy Jr. Will talk about BTC
US Presidential candidate Robert F. Kennedy Jr. will talk at length about Bitcoin in an interview with The Wolf Of All Streets on Wednesday, July 26. He recently promised to support BTC and exempt cryptocurrencies from taxes if elected to power.
Mark your calendars. @natbrunell @1MarkMoss @Breedlove22 @MartyBent and I will be discussing #Bitcoin with @RobertKennedyJr this Wednesday at 2 PM EST.
— The Wolf Of All Streets (@scottmelker) July 22, 2023
Bitcoin options contracts will expire on this date
Another critical development is that Bitcoin’s option period expires on July 28. If the BTC price drops below $29,000 by this date, it will hurt most of the investors. Total open interest for call options is 45,083. The highest stakes are rising towards $30,000 and $31,000, representing notional value of $300 million. The put-to-call rate is 0.55 and the total notional value is approximately $2 billion.
If the price of Bitcoin does not exceed $30,000 by July 28, it could trigger strong bearish pressure. This will likely pull the price below $29,000.
Correlation with the S&P500 is critical
Bitcoin, meanwhile, is at risk from an imminent drop that US stock markets may soon pull. The S&P500 Index is currently on a rare bullish streak, down less than 1% for eight weeks in a row.
The Dow Jones Industrial Average closed its weekly earnings positive for the 10th time for the first time since 2017. The debate around AI-linked stocks has recently helped keep the S&P 500 buoyant, which has a historical correlation with the crypto market.
What’s next for BTC price?
Bitcoin has been consistently below $30,000 lately. This indicates that there is no strong buying interest at current price levels. Despite the uptrend towards $30,100, the long wick on the candlestick confirmed that the sellers were active. The bears will likely aim to consolidate their holdings by pushing the price below the critical $29,500 support level.
If they do, there is a bearish sense of continued consolidation. BTC price will potentially gain momentum towards the strong support at $27,200. On the other hand, things turn in the bulls’ favor if the price recovers sharply from $29.5K. If it rises above the $30,500-$30,800 range, it will signal a potential rise to $31,000. Finally, a break above $32,500 brings fresh gains.
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