Bitcoin price fell back towards the $77,000 level after facing rejection at the $78,000 level as investors remained cautious ahead of today’s FOMC decision.
summary
- Bitcoin price fell to $75,850 after rejection near $80,000, as investors turned cautious ahead of the Fed’s interest rate decision.
- Markets are not anticipating a rate cut with 100% odds, while geopolitical tensions and macro uncertainty keep risk appetite low.
- Technical analysis shows a breakdown of the down channel and a MACD crossover, with $80,000 as major resistance and $75,000-$70,000 as bearish support areas.
According to data from crypto.news, Bitcoin (Bitcoin) The price faced rejection at around $80,000 on Monday, after which it fell 4% to an intraday low of $75,850 on Tuesday. This came amid uncertainty surrounding the opening of the Strait of Hormuz amid stalled peace negotiations between the US and Iran, keeping investors in a risk-off mode.
While investors bought the dip, helping push Bitcoin back to $77,800, it fell short of that. The number exceeded 80 thousand dollars Investors entered a wait-and-watch mode ahead of the Federal Interest Rate decision scheduled to be announced later today.
Both CME FedWatch tool Polymarket forecasts showed that the odds of the Fed keeping interest rates at 3.5% to 3.75% reached 100%, reflecting an overall consensus among market participants.
While markets haven’t really priced in any interest rate cuts for April, the continued hawkish stance from central bankers has dampened their appetite for Bitcoin and the broader cryptocurrency market as a whole, as borrowing costs remain high.
Looking ahead, the next major milestone for Bitcoin is the fundamental PCE data that will be revealed tomorrow. As the Fed’s preferred measure of inflation, this data will be crucial to determining whether price pressures are abating. Initial estimates indicate that any surprise in this report could lead to significant volatility in all risk assets.
Despite the short-term decline, some analysts point out that the current pullback in Bitcoin is typical behavior ahead of major monetary policy announcements. They believe that Bitcoin may still be in a phase of strong market conditions, suggesting that the current consolidation phase may give way to renewed strength once overall clarity emerges.
Bitcoin price analysis
On the daily chart, Bitcoin price has confirmed a bearish breakdown from a bullish channel pattern that has been forming since late March. Historically, such a move indicates that previous bullish momentum is fading and that a deeper correction may be on the horizon.
Adding to the bearish outlook, the MACD printed a bearish crossover, indicating that short-term momentum has shifted in favor of sellers. This indicates caution for traders considering new long positions at current levels.
However, the Aroon indicator is giving a mixed signal. While the Aroon Up level is still high at 85.71%, the Aroon Down level is still relatively low. This means that despite the recent pullback, the broader uptrend has not completely lost steam, and buyers may still be trying to maintain control.
Right now, $80,000 represents massive psychological resistance, especially with no interest rate cuts expected in the near future. However, if the bulls can break through this barrier, the next targets will be at $85,000 and perhaps $90,000.
On the downside, a sustained decline below $75,000 would confirm further weakness and could push Bitcoin towards the $70,000 support area.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
