Bitcoin Price Reacts to FOMC Friction as Traders Anticipate Movement Towards Mid-$50K Zone

Publish on 19 March 2024

The price of Bitcoin (BTC) continued its downward trajectory, ticking down to $63,745 and approaching the $60,000 mark as the Wall Street opening on March 19 approached. BTC's weakness persisted without showing signs of fading, contributing to volatile market conditions.

Amidst this, BTC/USD was seen preparing to test the $62,000 level, encountering fresh selling pressure after the daily close and dropping by almost 8% on the day. These movements coincided with various factors affecting the market, including the anticipation of the upcoming interest rates decision from the U.S. Federal Reserve on March 20.

Additionally, the strengthening of the U.S. dollar, with the U.S. dollar index (DXY) spiking above 104 before consolidating, added further pressure on Bitcoin's price.

Market observers noted several headwinds for Bitcoin, including Japan's central bank raising rates for the first time since 2007 and significant outflows from the Grayscale Bitcoin Trust (GBTC), which reached a record $642 million on March 18.

Despite the current correction, some traders remained optimistic about Bitcoin's overall strength. Michaël van de Poppe suggested that a potential bottoming procedure could be underway, with a shallow correction presenting opportunities for altcoins. However, he also pointed out the possibility of a bearish divergence and identified $60,000 as a potential reversal point.

Veteran trader Peter Brandt echoed the sentiment of a healthy correction, emphasizing Bitcoin's major bull trend. While he highlighted the potential for a deeper comedown towards $55,000, he remained confident in BTC's broader rising trend.

Overall, despite the ongoing correction and challenges in flipping old all-time highs, confidence in Bitcoin's long-term bull market remained intact among many market participants.

Previous Post
Genesis Crypto Broker Halts Withdrawals
Next Post
Google Updates Crypto Ads Policy, Here’s What Chan...

Related News