Bitcoin Price Struggles to Hold $27,000 Support After Fed Meeting
The Federal Open Market Committee (FOMC) meeting resulted in unchanged interest rates for September, which was expected by investors. The Fed Chair, Jerome Powell, stated that the regulator will proceed carefully in determining additional policy firming. While there were no immediate reactions from investors, a trendless trading period may follow as long as the $27,000 support level is maintained.
Bitcoin Price Direction and Market Sentiment
Santiment, an on-chain analytics platform, sees the unchanged interest rates as a positive signal for Bitcoin and the overall crypto market. They note that despite the SP500 plummeting to 4-week lows, crypto market caps have remained stable. However, technical analysis suggests that Bitcoin’s uptrend may not be strong enough to prevent a possible retracement.
Possible Retracement and Key Support Levels
If bears take control and push Bitcoin below the $27,000 support level, the path of least resistance would shift downwards. The 200-day EMA at $26,710 and the 100-day EMA at $26,519 would act as support levels. Further losses could target $26,000 and the major support level at $25,000.
Bearish Fractal and Potential Correction
Analyst Rekt Capital believes that Bitcoin price is on the verge of a natural correction after facing resistance at $27,150. This old support now acts as new resistance and suggests a significant retracement may occur. A bearish fractal pattern supports this notion by allowing BTC price to rise sharply before retracing to gather fresh liquidity before another climb.
Key Levels to Watch
To avoid losses, traders should keep an eye on key levels such as resistance at $27,200, support/resistance at $27,000, $26,000, and $25,000. Monitoring these levels can help inform trading decisions and minimize potential risks.
Hot Take: Bitcoin Price Faces Potential Correction After Fed Meeting
The Federal Open Market Committee’s decision to keep interest rates unchanged has led to a period of uncertainty for Bitcoin price. While the market reaction was not immediate, there are indications of a possible retracement in the near future. Technical analysis and market sentiment suggest that bears may gain control if the $27,000 support level is breached. Traders should closely monitor key support and resistance levels to make informed decisions and mitigate potential losses. Overall, the crypto market remains resilient despite the broader market’s decline, offering hope for Bitcoin’s future performance.
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