Investors remain cautious as the trading range narrows due to the expected rate hike by the US Federal Reserve. The FOMC's meeting may result in a 25 basis point rate increase, and concerns about inflation are impacting economic stability. Bitcoin's price has been affected, with a sell-off below $30,000 gaining momentum. The largest cryptocurrency briefly dropped to $28,862.
Bitcoin's value persisted in its downward trajectory, dropping below the critical $29,000 level and exposing the potential for additional declines towards the $28,200 support zone in the coming days. The breach of the significant $30,000 support zone indicates a shift towards bearish sentiment in the market. Moreover, the break below the key support level at $29,650 triggered a fresh decline in Bitcoin's price.
Additionally, a significant bullish trend line with support near $29,700 on the hourly chart of the BTC/USD pair was broken. As a result, the pair tested the $28,800 level and formed a new weekly low around $28,862. Presently, the price is consolidating its losses as the market sentiment remains uncertain.
Yesterday, Bitcoin broke below the megaphone pattern and is currently trading below the 100-day Moving Average. On July 24, it suffered a significant drop, reaching $29,000, suggesting a potential bearish takeover. The failure to maintain higher levels likely led short-term bulls to take profits, while aggressive bears capitalized on the opportunity to open short positions.
According to Coingabbar Price Analysis, the market capitalization of BTC stands at $566,391,099,500. The 24-hour trading volume is approximately $14,228,970,002.
KEY LEVELS :
RESISTANCE LEVEL : $29,500-$30,000
SUPPORT LEVEL : $28,800-$28,400
Will the upcoming Federal Reserve rate decision and the release of consumer confidence data from the United States lead to increased market volatility? Could the outcome of the Fed meeting spark a rally or cause a shrinkage in Bitcoin's price? And what impact might the approval or rejection of ETF applications have on the market?
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.