The FED continues to keep the crypto market on its toes ahead of today’s meeting. However, Bitcoin price action manages to rise a little higher before the Wall Street opening. BTC is trying to recoup its losses as the hour of macroeconomic reckoning approaches.
Fed to announce rate decision
Before the Wall Street opening on July 27, BTC/USD hit a 24-hour high. In fact, Bitcoin dropped below $21,000 in the first part of the week. The fact that the FED will hold a meeting has increased tensions among the already cautious traders. The outcome of today’s FOMC meeting will reveal whether the US will raise interest rates. As we reported as Kriptokoin.com, the market is fluctuating around the FED 75 basis point or 100 basis point interest rate hike. However, most people expect a 75 basis point increase. However, whether it is an increase of 75 or 100 basis points, both are negative for cryptocurrencies. This is because the interest rate hike strengthens fears of recession and inflation.
“This resistance for Bitcoin is a harbinger of bad developments”
Popular analyst Crypto Tony evaluated the price of Bitcoin on his Twitter account. “I will stay short while below the $22,200 high range,” the analyst said. He also stated that BTC retracing the high range will enable him to open a long position. Other analysts and data platforms took a different view. They evaluated BTC price action beyond the Fed meeting. Accordingly, they warned investors that the leading cryptocurrency is in a bearish trend despite the rise in recent weeks.
One of the strongest voices among the warnings came from whale data tracking platform WhaleMap. WhaleMap says rejection at the $24,300 resistance for Bitcoin is not a good sign. The firm mentioned that neither technical analysis nor volume profile sees this level as resistance. He then stated that the realized price bands are the only thing that indicates a possible rejection. The price chart by address is an indicator of which price the different BTC groups moved last. Accordingly, it showed that there was no relative resistance at Bitcoin’s local top of $24,300. Data from analytics firm Glassnode also confirmed this. Glassnode announced that the price of Bitcoin by address is at the level of $ 21,800 at the time of writing.
This could be the last high interest rate hike
Meanwhile, trading firm QCP Capital further discussed the potential impact of the Fed. The firm said that the historical example is actually on the side of those who hodl. Staff speculate that Fed Chairman Jerome Powell will aim to reassure markets that future rate hikes won’t be as severe. Accordingly, there is a good chance that Powell will state that this 75 basis point increase was a one-off. Moreover, the Fed is likely to return to 50 basis points in the future due to slowing growth and easing inflation. If this happens, Bitcoin and the markets will react positively. However, this does not mean that the rate announcement will happen without market tremors. QCP Capital said markets were overly sensitive to the FOMC’s rate announcements.
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