Bitcoin Bulls Eyeing $31,000 Amidst FOMC Meeting
The recent rejection from resistance at $27,200 did not deter Bitcoin price bulls, as they are now looking to settle above $27,000 and potentially rally to $31,000. However, there is a possibility of a drop in search of more liquidity from the major support at $25,000 or even down to $22,000.
Impact of FOMC Meeting on Bitcoin
The outcome of the Federal Open Market Committee (FOMC) meeting is being closely watched by the crypto market. Analysts expect the Federal Reserve to pause interest rate hikes for the second time this year, but keep the possibility open for future increases. Bitcoin price could be affected depending on the Fed’s decision.
The release of the August Consumer Price Index (CPI) data, which showed slowing inflation, has helped Bitcoin maintain its uptrend. However, concerns over rising crude oil prices and inflation persist among some committee members.
Bitcoin’s Market Structure and Trend Indicators
The weekly chart indicates that Bitcoin’s market structure is improving, with key moving averages providing support levels. If the 21-week EMA and 100-week EMA turn into support levels, Bitcoin could break out to $31,000 before experiencing another downward movement.
Trend indicators such as the SuperTrend and Money Flow Index (MFI) suggest a bullish trend. As long as the SuperTrend supports Bitcoin price and the MFI indicates an uptrend in money flow into BTC markets, there is a higher probability of a larger uptrend.
Institutional Adoption Driving Bitcoin Price
Despite previous market downturns, institutional investors continue to show interest in Bitcoin. The push for a spot Bitcoin exchange-traded fund (ETF) has attracted major global firms. The launch of an Adoption Fund for institutional investors by Nomura, Japan’s largest bank, has further boosted Bitcoin’s price above $27,000.
However, Santiment reports that whales have been dropping stablecoins, which could hinder the current uptrend. The supply of stablecoins held by whales with balances over $5 million is at its lowest level in six months. To see a significant increase in Bitcoin price, these whale addresses need to increase their supply.
Hot Take: Increased Institutional Adoption and Potential Obstacles
The growing interest from institutional investors in Bitcoin is expected to have a positive long-term impact on its price. However, short-term obstacles such as whales dropping stablecoins could affect the current uptrend. To sustain the upward movement, it is crucial for these whales to increase their stablecoin supply. Overall, the outcome of the FOMC meeting and ongoing institutional adoption will heavily influence Bitcoin’s future performance.
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