Bitcoinย (BTC) price has shown equal participation betwixt the bulls and bears since early in the 30ย days. This is evident given that there have been no wholeย lotย of price movements, and Bitcoin has consolidated duringย a rather tight zone.
#BTC INTRADAY UPDATE
VOLATILITY : HIGH
EXPECTED SCENARIO:
Today is the FOMC discussion day. Market will be volatile around 6 PM UTC/ 11.30PM IST. Bitcoin isย still trading in the reance. May go in either direction after tonight.
Today $BTC is bearish and may continue downside.
See๐ pic.twitter.com/3UWK8MFc6Sโ Swap K. (@swap_crypto) May 24, 2023
Amongย the factors contributing to the rather boring price action displayed by Bitcoinย (BTC) price and the cryptocurrencyย market moreย traditionally are the macroeconomic events in the United States. Macroeconomics such as inflation, Consumer Price Index (CPI), Gross Domestic Product (GDP), interest prices, debt, unemployment, and retail sales, between others, have an impact on the cryptocurrencyย market because they control the strength of the Unitedย States dollar (USD). It isย importantย toย noteย that Bitcoinย (BTC) trades inversely with the USD, which means any news that renders the greenback weak advantages Bitcoinย (BTC) and vice versa.
Role Of Unitedย States Macroeconomics On Bitcoinย (BTC) Price And Cryptocurrency In General
By controlling for plentyย of possible biases, the Federal Reserve (Fed) determines whether each of the listed macroeconomics, between others, has a wholeย lotย of impact on Bitcoinย (BTC) or cryptocurrency returns. An boostย in positive news on unemployment prices and durable goods would normally result in an associated boostย in equity returns. Nonetheless, the opposite would be true for Bitcoinโs case, as increases in positive news after unemployment and durable goods announcements makeย a fall in Bitcoinย (BTC) returns.
On the otherย side, an boostย in the number of negative reports on the two readings would cause Bitcoinย (BTC) price to boost. Reports have likewise shown that as a developing market, digitalย currency persistsย to mature via interactions with macroeconomic news.
The Federal Open Market Committee (FOMC) is the monetary policymaking body of the Federal Reserve System. Chaired by the controversial Jerome Powell, the FOMC โschedules eight meetings per year, one about every 6 weeks or so,โ reportsย by the official website.
The Committee must likewise hold unscheduled meetings to review economic and financial developments whenever necessary. Afterward, they issue a policy statement summarizing the economic outlook and the policy decision at that meeting.
Bitcoinย (BTC) Price In Relation To Unitedย States FOMC
The Fed will release minutes of the FOMCโs May 2 โ 3 policy meeting today, May 24, at 18:00 GMT, supplying valuable insights into the Fedโs monetary policy outlook. They will likewise communicate about theย capacity for further price hikes. As has been the norm, market players will monitor the minutes closely for any hints on the Fedโs stance on inflation, economic growth, and interest prices, which often affect financial markets.
During the May meeting, the FOMC raised the federal funds price by 25bps to the range of 5.00 โ 5.25%, as markets anticipated. Eliminating โanticipates additional policy tighteningโ overย theย pastย reading intimated at a potential pause at theย following June 13-14 meeting. Given the latest round of economic data, onย theย otherย hand, the odds of a price hike are higher, but only a small hike. Nevertheless, the market reaction mayย be limited if todayโs minutes confirm a pause. Notwithstanding, comments about price cuts by year-end are not expected, although their presence could provoke a buying spree in BTC.
The focus is on the agencyโs view of theย present price relative to the peak and whether, along with the tightening in credit standards resulting from the banking crisis, the price is restrictive enough to attract inflation back to 2%.
Most Wall Street analysts sayย the price hike in May was the last of this cycle. Market participants share this sentiment and haveย increased bets on severalย interest price cuts beginning in Q3.
Key Insights To Look Out For In Todayโs FOMC Meeting
- The danger posed by regional banks, credit tightening, legislature perspectives on debt limit crisis,ย and the overall economic outlook.
- Specialists assign a 75 percent chance of theย Fed keeping prices unchanged in June but factor in about 160 bps of interest price cuts until November 2024, reportsย by theย CME Groupย FedWatch tool.
- A cohort of Fed speakers has sounded slightly more hawkish of late than anticipated, butย Fed Chairย Jerome Powellย has signaled that tighter bankingย credit could limit the must increase prices further.
Expert advice isย theย factย that traders make use of stop loss as a management of danger intendย to avoid substantial losses in case of increased market volatility.
Bitcoinย (BTC) Price Prediction With $26,500 In Sight
Atย theย timeย ofย publication, Bitcoinย (BTC) price is $26,816, a daily fall of 2%, indicating Fear, Uncertainty, and Doubt (FUD) ahead of the FOMC notice. Bitcoinย (BTC) price is confronting selling pressure prevented by the 50-day Exponential Moving Average (EMA) at $27,495. This is probably a cohort of traders looking to sell as they anticipate a negative reading from the Fed.
Nevertheless, accordingย to the general outlook, Bitcoinย (BTC) price is pulling towards bullishness, although the momentum remains weak. The Parabolic SAR indicator evidences this after it flipped below BTC. Whenever this trend-following indicator tracks the price from below, it is interpreted as a positiveย tendency sign.
Thisย isย why, an boostย in buyer momentum could see Bitcoinย (BTC) price shatter over the 50-day EMA, paving the way for further profits. In such a case, Bitcoin could tag the $28,556 resistance level next or make an extension to the April 14 high of around $30,728 in a highly positiveย tendency case. Such a move would constitute a 15 percent goย up from theย present price.
Toย facilitate this thesis, the Awesome Oscillators were soaked in green and steadily pulling toward the midline, a sign that bulls were gaining ground and could take over soon. Similarly, Bitcoin had strong support downward provided by buying pressure from the 100-day and 200-day EMA at $26,382 and $24,968, respectively.
Conversely, if panic sellers pull the trigger, Bitcoinย (BTC) price could fall. The Relative Strength Index (RSI) has already intimated at the likelihoodย of such an outcome. The RSI has tipped downward and is about to signal a call to sell BTC. This would be confirmed once the RSI crosses below the signal line (yellow band). Traders heeding this call will send Bitcoinย (BTC) price lower, potentially toward the psychological $24 000.
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Read More:
- Ecoterra Price Prediction โ ECOTERRA Coin Potential
- How to Buy Ecoterra Cryptoย Token โ Recycle to Earn Presale
