Attention Bitcoin Traders! Next BTC rally may depend on this decisive factor

Bitcoin [BTC] Traders found themselves in a difficult situation this week after reversing for the past seven days. The bearish performance caused BTC to crash and at the time of publication the crypto king was in critical territory on short-term support. Her administration from this point on was at the mercy of the FOMC meeting.

Bitcoin was sitting on its short-term support at $19,004 at press time. However, its performance over the next 24 hours will change significantly depending on the outcome of the FOMC meeting. The interest rate is expected to be adjusted by the US Federal Fund. This will affect investor sentiment as it has in the past.

The current forecast favors an increase of 0.5% or 0.75%. The latter would trigger a stronger bullish sentiment for BTC while the former would support a range-bound performance. This was the case according to Schedule which provide guidance or assess potential performance based on federal rate data.

Source: Twitter

While the current sentiment was strong for the 0.5% to 0.75% rate, a 1% rate hike is still a possibility. The 1% interest rate is expected to spark bearish sentiment. However, the resulting downside could push BTC towards the $17,600 price range.

In addition, on-chain metrics have shown uncertainty as investors await the crucial FOMC decision. A measure of dormancy indicates a significant decrease in the dormancy period over the past 30 days. At press time, it was near monthly lows, which is not surprising as investors wait to see how the market will react.

Source: Glassnode

The calm was reflected in the electoral activity, especially from the middle of the month. Addresses with more than 1,000 BTC are down significantly as of September 15th. But outflows from these addresses have also declined since September 18. This result reflected the uncertainty surrounding the FOMC meeting and the impact of the announced price.

Source: Glassnode

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The possible outcome could be another sharp rise or a slight fall. Titles that have already been sold are likely to benefit and start piling up, especially if there is an additional downside. This result can provide a softer subsidence, and therefore a limited disadvantage.

On the other hand, a positive result from the FOMC could lead to a strong buy signal, especially from whales. This result may support a strong recovery towards the end of the week.

Thus, the results of the FOMC meeting will give a rough idea of ​​how the Fed will fight inflation. A positive outcome could reduce selling pressure on Bitcoin and the riskier asset class in general.

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