Is Bitcoin price rebounding to 57K? Here’s why these levels are important:
Bitcoin (BTC) hit a two-month low at the Wall Street open on May 1 as the risk asset braces for the next macro move in the United States.
Bitcoin Volatility Cools as FOMC
Data from Cointelegraph Markets Pro and TradingView followed the volatile BTC price action for several hours after hitting a new low of $56,500 on Bitstamp.
Traders maintained their lead across risk assets ahead of the Federal Reserve’s next interest rate announcement and Chairman Jerome Powell’s follow-up press conference.
After the Quarterly Refund Announcement (QRA) dealt a blow to the US liquidity outlook, market participants were hoping that Chairman Powell’s tone would not be too hawkish after the Federal Open Market Committee (FOMC) meeting.
“This afternoon’s FOMC statement and Reporter Powell will likely confirm USD currency market prices for a much more lukewarm policy normalization cycle,” said Darius Dale, founder and CEO of risk management firm 42 Macro. wrote This is part of a digest for X (formerly Twitter).
“Chairman Powell favors a ‘two-sided risk to the economic outlook,’ but the reality is that the preponderance of evidence supports a ‘no-landing’ scenario as the most likely outcome. So ‘higher for longer’ is likely to be the dominant message today.”
The latest data from CME Group’s FedWatch tool highlighted the lackluster expectations of good news, with a 99% chance the Fed will keep interest rates at current levels.
Striking a more optimistic tone, popular trader CrypNuevo suggested that the worst of the Bitcoin and altcoin losses are likely complete.
“BTC has fallen really hard and this reinforces the idea that it will likely be priced in no matter what Jerome Powell says today,” he said. said X number of subscribers.
“Shall we test the bottom again?”
Meanwhile, in the latest edition of the London and New York Daily Color Market Update sent to subscribers of its Telegram channel, trading firm QCP Capital noted that both Powell and QRA could potentially be a surprise on sentiment on risk.
“There are currently two important events happening that could exacerbate or reverse this bearish move,” it said.
“First, if Powell is dovish on the FOMC, it could provide a bullish reversal. Second, if QRA (Quarterly Rebate Announcement) results in massive issuance of US greenbacks (back) instead of 10-year notes (back), concerns about a spike in long-term interest rates could ease and put some brakes on the USD. rally.”
BTC Price Returns to a “Typical” Bull Market
Therefore, Bitcoin traders observed a critical BTC price level after several lines in the sand broke down.
Related: Why Is Bitcoin Price Down Today?
“This current Bitcoin retracement is slowly turning into almost a 50-day retracement,” said popular trader and analyst Rekt Capital. exposed day.
The attached chart compares BTC price declines throughout the bull market that began in early 2023.
Rekt Capital described the recent downtrend of over 20% as “typical” in this context.
“A typical retracement takes two to three weeks, with longer cases taking up to two months,” he said.
Meanwhile, Filbfilb, co-founder of trading suite DecenTrader, has predicted the possibility of a Bitcoin renaissance following in gold’s footsteps in recent years.
“I think we could go lower than the charts, but the general thinking is that if we stay strong in the coming months, this may happen,” he wrote. X thread While comparing two assets.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
