Bitcoin – Exploring key price levels to watch as FOMC meeting looms ahead
The post Bitcoin – Exploring key price levels to watch as FOMC meeting looms ahead appeared on BitcoinEthereumNews.com.
Bitcoin’s reaction to the last FOMC report highlighted its sensitivity to U.S monetary policy shifts and macroeconomic data Key resistance at $106,000 and support at $102,750 set the stage for Bitcoin’s next move as FOMC decision looms The Federal Open Market Committee meeting is one of the most anticipated events on the financial calendar, influencing markets far and wide. Bitcoin, known for its sensitivity to macroeconomic events, stands at a pivotal juncture as traders gear up for potential volatility ahead of the meeting. Unpacking the FOMC’s influence on Bitcoin The FOMC plays a crucial role in setting U.S monetary policy through decisions on interest rates and liquidity measures. For Bitcoin, these meetings often bring sharp market reactions. A hawkish position that raises interest rates tends to strengthen the U.S dollar, creating headwinds for Bitcoin. Conversely, hinting at rate cuts or pauses, a dovish tone generally weakens the dollar, boosting Bitcoin as traders seek higher-yielding assets. Historically, Bitcoin’s price has reacted strongly to FOMC announcements, with heightened volatility in the hours and days following the decisions. As markets await clarity, traders look to key levels for guidance. Bitcoin’s price action and levels in focus To anticipate how Bitcoin might perform leading up to the FOMC meeting, analyzing its recent price trends might offer us some valuable insights. On the 4-hour chart, Bitcoin was trading just below $106,000 – A key resistance level. A breakout here could signal a rally to $110,000, while strong support lay near $102,750, cushioning the downside. Moving averages revealed a bullish setup, with the 50-day moving average trending above the 200-day average. However, trading volumes have remained subdued lately – A sign of a cautious market. Source: TradingView On the daily chart, the MACD indicator flashed positive momentum, hinting at a bullish continuation. Still, traders are wary…
Filed under: News - @ January 25, 2025 3:23 am