13.9 C
Sunday, September 25, 2022
HomeCryptocurrencyBitcoin price dives pre-FOMC amid warning $17.6K low was not the bottom

Bitcoin price dives pre-FOMC amid warning $17.6K low was not the bottom

Bitcoin (Bitcoin) plunged to weekly lows at the Aug. 17 Wall Street open as the Federal Reserve commented it would unsettle risky assets.

BTC/USD 1 hour candlestick chart (Bitstamp).Source: Trading View

Dollar rises as Federal Reserve minutes expire

data from Cointelegraph Market Pro When TradingView BTC/USD fell more than 2% daily, reaching $23,325 on Bitstamp.

The pair, already showing signs of weakness, fell further as US stocks opened trading hours before the Federal Open Market Committee (FOMC) released the minutes of its latest meeting.

Although no decision on interest rates is included, the meeting was signaled to give insight into the Fed’s thinking on the next interest rate adjustment scheduled for September.

Cointelegraph contributor Mikael van de Poppe said, “The FOMC minutes are a big event tonight and will give us information on whether the Fed will be a hawk or a dove.” Told. wrap up in his latest Twitter update.

“I don’t think it will have a big impact, but cryptocurrencies tend to give a huge amount of value to it, so the volatility is high.”

Stocks hit significant resistance along the cryptocurrency line this week, with some sources continuing to predict further significant retracements across the board.

Justin Bennett, founder of crypto education platform Crypto Academy, has warned that the S&P 500 has been mimicking behavior since just before the 2008 global financial crisis.

“This is shocking. The S&P 500 mimics the 2008 crash. The timing since the ATH is pretty much the same.” commented in the comparison table.

“There is no bottom for stocks and cryptocurrencies.”

A sign of the day came in the form of a rise in the US Dollar, with the US Dollar Index (DXY) trying to attack the resistance throughout August.

“$DXY could be headed for 112-113 after fakeout below 105.50. It will weigh on equities and cryptocurrencies,” Bennett said. Added.

US Dollar Index (DXY) 1-day candlestick chart.Source: Trading View

Buyers see lower bids

On the shorter timeframe, Bitcoin’s trend also quickly lost momentum, with bid support tipping Binance’s order book down.

Related: Bitcoin Price Slams Rejection At $24.5K As Traders Doubt Its Strength

On-chain monitoring resource material indicator captured The action concludes, “We still believe the bear market rally is losing momentum, even if it rises again.”

Upside targets can come in the form of 100-day moving averages. explainedat $24,544 at the time of writing.

Commentator Matthew Hyland has been warning about this collapse of Bitcoin for the past few days. Conclusion.

“The structure has been weak across the board recently. The market seems to have shown the first signs of life just last week.

BTC/USD buy/sell level (Binance). Source: Material Indicators/ Twitter

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. All investment and trading movements involve risk. You should do your own research when making a decision.