Bitcoin Holds Steady as FOMC Announcement Approaches
Bitcoin (BTC) maintained its position above $27,000 as the highly anticipated Federal Open Market Committee (FOMC) decision loomed.
Market Prepared for Bitcoin Price Volatility
Market data from Cointelegraph Markets Pro and TradingView indicated that the focus of BTC price action was shifting upward compared to the previous week. The cryptocurrency market displayed confidence ahead of the United States Federal Reserve's announcement on interest rates, expecting potential implications.
99% Likelihood of Rates Staying Unchanged
According to CME Group’s FedWatch Tool, there was a 99% probability that the Fed would maintain rates at current levels. Financial commentator Tedtalksmacro noted that core CPI inflation aligned with the Fed's targets, indicating a positive outlook for the meeting.
Thin Liquidity and Potential Volatility
An analysis of BTC/USD order book on Binance, the largest global exchange, revealed thin liquidity in the spot price range. Material Indicators, a monitoring resource, suggested that the order book was poised to accommodate more volatility. The subsequent speech and press conference by Fed Chair Jerome Powell were expected to further impact BTC price action.
Bitcoin Traders Prepare for FOMC Reaction
Traders were anticipating the FOMC decision to challenge certain range levels. Popular trader Daan Crypto Trades mentioned the likelihood of triggering stop-loss orders during the volatile period. Fellow trader Jelle predicted "choppy waters," while trader Skew anticipated an active trading environment.
Bitcoin bulls were advised to defend the $26,800 level to maintain a positive stance. This level was considered crucial for sustaining long positions, as pointed out by Crypto Tony.
This article serves as analysis and does not provide investment advice. Readers are encouraged to conduct their own research before making any investment decisions.
