Crypto News– The Bitcoin price is currently grappling with the challenge of maintaining its position at the $27,000 support level, and this struggle has been accentuated by the recent Federal Open Market Committee (FOMC) meeting. As widely anticipated, the FOMC opted to leave interest rates unchanged for the month of September.
Bitcoin Price Analysis: Is a Bearish Trend Looming After Bulls Abandon the 27k Dollars Support?
The regulatory body has left the door open for at least one more rate hike before the year concludes, signaling a reduction in the number of cuts previously outlined for 2024. Fed Chair Jerome Powell indicated that the regulator is proceeding cautiously in determining the extent of additional policy tightening.
Interestingly, the market did not exhibit any abrupt reactions in response to this announcement, as the pause in rate hikes had already been anticipated and factored into investor expectations. However, there are indications pointing toward a period of trendless trading that could persist, provided that bullish forces continue to defend the $27,000 support level.
Bitcoin Price Direction: What Lies Ahead?
Sentiment, an on-chain analytics platform, holds the view that the unchanged interest rates signal a positive outlook for Bitcoin and the broader cryptocurrency market.
In a recent post on X, Santiment remarked, “Crypto market caps have held up well, despite the S&P 500 experiencing a significant drop to 4-week lows. This represents a promising break in correlation,” suggesting an encouraging development.
The week began with a rejection shortly after Bitcoin’s price touched the $27,200 level, indicating a degree of vulnerability and the potential for a pullback. Bulls, however, have an opportunity to defend against further declines, with the $27,000 support level remaining robust.
Nonetheless, the current uptrend may not be robust enough to entirely dismiss the possibility of a retracement to gather liquidity, particularly as Bitcoin’s price is currently trading below the 21-day Exponential Moving Average (EMA) represented in red.
Should bears establish a stronghold at $27,000, the path of least resistance could shift downward. In this scenario, the 200-day EMA (in purple) would attempt to absorb selling pressure at $26,710, followed by the 100-day EMA at $26,519. Further losses would target $26,000 and the critical support level at $25,000. The position of the Moving Average Convergence Divergence (MACD) indicator suggests that sellers may gain the upper hand, as signaled by the blue MACD line crossing below the red signal line.
Respected analyst and trader, Rekt Capital, opines that Bitcoin’s price is poised for a natural correction after encountering resistance at $27,150. With this “old support now serving as new resistance,” a substantial retracement is anticipated.
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