Bitcoin price drops 2% after Fed keeps interest rates unchanged at 5.25-5.50%;
Will BTC continue to fall?
Market participants have high hopes for the Fed’s decision to keep interest rates unchanged at 5.25-5.50% on July 31, 2024. The decision was made after the Federal Open Market Committee (FOMC) held a two-day meeting to assess the current economic conditions. By keeping interest rates stable, the Fed aims to balance its dual mandate of maximum employment and 2% inflation rate in the long term.
Despite the Fed’s decision to keep interest rates unchanged, Bitcoin price fell 2% to $64,750, indicating that supply pressures in the market are rising again. The decline highlights the bearish sentiment that pervades the market, which is exacerbated by stable interest rates. The 20-day exponential moving average (EMA) indicates that this corrective trend has begun and if it continues, it may push BTC prices further down.
Technical analysis shows that Bitcoin is currently experiencing a reversal from the resistance line of the broadening wedge pattern. Historically, a reversal of this pattern has led to a sharp price correction. MACD approaching a bearish crossover suggests long-term selling pressure, which could further depress the value of Bitcoin. Possible support is near the 50-day and 100-day EMAs near $63,370, providing some cushion for traders.
The Fed’s decision to maintain interest rates has had a significant impact on Bitcoin’s recent price action. Although market supply pressures remain strong, technical indicators suggest potential support levels that could prevent further declines. As traders and investors closely monitor these developments, Bitcoin’s future movement will depend on macroeconomic factors and market sentiment.
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