The crypto markets are recovering as the Bitcoin price regains crucial levels above $64,000 after marking lows below $60,800. This crucial recovery suggests the bulls are gaining back their control and hence the possibility of the price reclaiming the lost levels above $65,000 may become more prominent.
The BTC price is experiencing pretty large swings ahead of the FOMC, which makes the trade more cautious at the moment. It appears that the investors are playing it safe ahead of the FOMC meeting. The upcoming FED decision could be a big deal for the BTC price and the entire crypto space, as investors fear a less crypto-friendly stance due to US economic data and persistent inflation.
The previous Fed rates were not in favour of the crypto space last week, as the US inflation rate came out to be hotter than expected. Alongside, the flow into the US-listed Bitcoin ETFs has been disappointing these days as investors trimmed risks before the Fed meeting. Therefore, there is speculation that if the Fed adopts a more hawkish tone, it could dampen investor appetite for crypto, which may extend the current market correction.
The Impact of FOMC on BTC Price
The Bitcoin price is currently rebounding but is still down by some range, which reflects the border market turbulence. In the meantime, investors also appear to be cautious ahead of the Fed meeting. Mainly because the concerns about a less crypto-friendly policy stance and economic data are driving uncertainty in the crypto markets.
The BTC price is trying hard to enter the key-resistance zone between $63,008 and $66,612, while the technicals do not appear to be in favour of the move. The RSI is heading towards the lower support and the DMI is also flashing a massive bearish signal, with the ADX displaying a bearish divergence. Hence, all indicators point out that the current upswing may trap the bulls at the interim highs. The price appears to be pre-programmed to plunge below $60,000 which could be followed by a massive bullish spell.