Bitcoin Price Stagnation Under $85K: Key Levels and Market Insights Ahead of FOMC
Bitcoin has stalled under $85,000, failing to break resistance levels despite recent fluctuations. The upcoming FOMC meeting poses potential volatility, with a 99% chance of stable interest rates. Analysts spotlight key levels of $85,000 for support and bearish targets below $74,000, emphasizing the market’s dynamic sentiment and the influence of macroeconomic indicators.
Bitcoin’s price trajectory has stalled below the resistance level of $85,000 as of March 17, with daily candle highs fluctuating between $84,000 and $85,200. Despite these attempts, it has not managed to close above $84,600. Currently, Bitcoin is caught in a state of uncertainty defined as “no man’s land” on the lower time frame charts, which could lead to dynamic and volatile market movements as external events unfold.
The upcoming Federal Open Market Committee (FOMC) meeting, occurring from March 18 to 19, is anticipated to elicit greater market volatility, particularly around key Bitcoin price levels. The pivotal announcement regarding interest rates is scheduled for March 19 at 2 PM ET. According to CME’s FedWatch tool, there exists a 99% probability that interest rates will stay between 4.25% and 4.50%, suggesting minimal expectation for a rate cut.
Market sentiment generally reflects that any bearish implications from unchanged interest rates have likely been factored in already. Investors are particularly attentive to Jerome Powell, the US Federal Reserve chair, during this FOMC meeting. Given the current data trends, Powell is expected to adopt a hawkish position given that the Consumer Price Index (CPI) is at 2.8%, significantly exceeding the Fed’s 2% target.
Despite recent CPI figures being lower than anticipated, immediate rate cuts do not seem plausible. With low unemployment rates recorded at 4.1% and GDP growth remaining healthy at 2.3% for Q4 2024, there appears to be no pressing need for economic stimulus. Notably, Polymarket predicts a 100% likelihood that the Fed will end quantitative tightening by April 30, potentially increasing the chances of a rate cut in the summer months.
For Bitcoin to progress towards higher targets, it must convert the $85,000 resistance into support, paving the way for aspirations of reaching $90,000. This transition necessitates that BTC/USD re-establishes itself above the 200-day exponential moving average, which it fell below for the first time since August 2024 on March 9.
Encouraging news for bulls includes significant inflows into Bitcoin ETFs, with $274 million recorded on March 17, signifying the largest inflow since early February. Conversely, bears are likely to challenge the $85,000 resistance, potentially dragging Bitcoin prices below $78,000, with a critical target poised at $74,000—the previous all-time high from early 2024.
Should Bitcoin dip below $74, pivotal price levels between $70,530 and $66,810 will emerge, with a daily order block established. A price point of $69,272 would indicate a retest of Bitcoin’s value from US election day, effectively diminishing the gains obtained during that period. Analyst SuperBitcoinBro indicates that the “worst case” for Bitcoin rests between $71,300 and $73,800, proposing it as a potential support across various timeframes.
Notably, analyst Nebraskangooner views the FOMC meeting as a significant variable, indicating that for a bullish outcome to materialize on the lower time frame, Bitcoin must reclaim the $86,250 mark. In light of recent trends, there is an expectation for a possible retest near the elusive $70,000 level in the forthcoming weeks. Please note, this article is not intended as financial advice, and readers must undertake their own research when contemplating investment decisions.
In summary, Bitcoin’s price remains below crucial resistance at $85,000, with upcoming events, particularly the FOMC meeting, likely to influence market volatility. With a robust sentiment surrounding interest rates and potential shifts in the market’s current dynamic, key price levels to monitor include the transformation of resistance into support at $85,000 and potential bearish targets below $74,000. Analysts suggest the need for strategic management of price movements over the ensuing weeks as significant economic indicators unfold.
Original Source: cointelegraph.com
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