The price of BTC is showing surprising movement this week, as it is willing to reclaim $27,000. At the time of writing, BTC was at $27,150. The crypto king, which usually performs poorly before Fed meetings, remained relatively strong this week. So how should we interpret this?
Where Are Fed Predictions Headed?
The Fed is likely to announce tonight that it is keeping interest rates steady, and the BTC price is moving positively as expected. Despite causing significant damage to risk markets with interest rate hikes for nearly one and a half years, the Fed has still not reached its desired level of inflation.
According to data from CME Group’s FedWatch Tool, there is a 99% chance that interest rates will remain unchanged. The data supports this, as the core CPI is currently in line with the Fed’s target on a three-month annual basis. Tedtalksmacro said the following:
“It will likely be the first meeting where the Fed acknowledges that inflation is on the right track.”
Bitcoin and Crypto Predictions
Material Indicators examined the order books of Binance, the largest exchange in terms of volume, and shed light on the current situation. The liquidity around the spot price is noticeably weak according to the data. The erosion in cumulative volume has been significantly low for months. We should remember the days in March when market makers weakened their power on exchanges.
“One particularly noticeable thing is that liquidity is thinly distributed throughout the range. We may see some walls being built, but for now, the order book appears to be set to handle more volatility.”
Additionally, it is expected that Powell’s statements will stir up the market. The $27,450 region is strongly defended by sellers based on liquidity density. If BTC can stay above this region, we may see a real recovery.
Daan Crypto Trades believes that today’s volatility could be an opportunity to break through resistance. Jelle was also among those expecting volatility when the Fed decision was announced.
Lastly, Crypto Tony stated that the critical support level that Bitcoin bulls need to protect is $26,800.
“This is what I’m looking for to stay in my long position. The support zone must remain above $26,800, otherwise we risk creating a deviation.”
