However, after finding support from the Nasdaq exchange, BTC reached a late high at $19,694 before settling back below $19,600. Despite the recovery, Bitcoin came under the first major resistance level (R1) at $19,912.
Early in the session, Fed and recession fears sent BTC to a new low in September. However, rising interest in riskier assets supported the recovery. Markets remain divided over whether the Fed will take advantage of labor market conditions to raise interest rates at a faster pace.
On Monday, the 75-point probability was 81.0% versus 19.0% for a 1 percentage point increase. The latest crash was less hawkish than it was on Sunday when the chance of a percentage point increase was 21%.
With the Fed’s policy decisions and expectations on Wednesday as the main event, the cryptocurrency market is likely to continue to follow the Nasdaq 100 Index. There are no US economic indicators to change sentiment today.
On Monday, the Nasdaq 100 is up 0.76%, with the Nasdaq 100 Mini up 36.5 points this morning.