Analysis
Bitcoin: Range extension on the cards until Fed’s decision
BTC could extend its muted price action near the range low and spike after the Fed decision on 20 September.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BTC continued to defend the range-low near $25.8k.
- Fed’s decision on 20 September could induce some volatility.
Interest rate traders are keenly preparing to exploit Bitcoin [BTC] price swings ahead of the FOMC (Federal Open Market Committee) Meeting on 20 September. There is expected market volatility before and after the Fed rate announcement.
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Over 90% of traders polled were inclined towards an unchanged Fed rate target range of 5.25% – 5.5%. So, a repeat of the June price action couldn’t be overruled if the Fed pauses the rate hike.
BTC fronted an impressive recovery in mid-June after the Fed pause rate hike alongside hype around ETF (Exchange-traded fund) filing from BlackRock and other firms.
What’s next for BTC price action?
Source: BTC/USDT on TradingView
After the mid-August dump, BTC price action was muted near the range-low of $25.8k. The 6% pump on 29 August was catalyzed by Grayscale’s win against the US SEC. But the win was short-lived, exposing BTC to a retraction to the range-low again.
The retraction left a price imbalance of $26.1k – $27.0k (white). Besides, price action was below the 50-EMA (Exponential Moving Average) and could act as a dynamic resistance before the Fed’s decision. So, BTC could attempt to fill the price imbalance and retest mid-range near $27k if the Fed’s decision is favorable.
Conversely, sellers could gain more leverage if they crack the daily bullish order block (OB) of $24.8k – $26k (cyan). Such a move could ease at the next support and weekly bullish OB of $21.4k – $23.45k (cyan).
Meanwhile, the RSI struggled to cross above the 50 mark since mid-July, reinforcing weakened buying pressure. The CMF also followed RSI’s trend but crossed above zero on 4 September, indicating capital inflows to the BTC market improved in the past week.
How much are 1,10,100 BTCs worth today?
Massive buy and sell limit orders at $25k and $28k
Source: Mobchart
According to Mobchart, a real-time order tracking platform, significant buy and sell limit orders were placed at $25k and $28k, respectively, at press time. It shows that BTC wild price swings could see a reversal at these levels.
However, Ethereum [ETH] could outperform BTC in the short to mid-term as ETH ETF approval is expected as early as October in the US.
