Only 1 hour left until the announcement of the decision that the cryptocurrency markets have been eagerly awaiting, and it’s time to take a look at the latest BTC price predictions. This week has been relatively good for investors, and the BTC price has recovered slightly. However, there was also high excitement as numerous experts expected excessive volatility during the Fed decision and Powell’s speech.
What Will the Fed Decide?
The expectation is that interest rates will remain unchanged, but 40% of economists participating in the FT survey say there could be an increase. This is very different from the FedWatch data, where a 99% chance of rates remaining unchanged was expected. Reuters experts also expect interest rates to remain unchanged. The most important agenda item today is whether the interest ceiling will be announced. Considering the rising fuel prices, things are not going exactly as the Fed wants, but for several meetings, Powell has been saying that “there is a tight monetary policy.” Is there a risk of excessive tightening? Yes, but the Fed has repeatedly stated that they consider this risk less important than the risk of early easing or insufficient tightening.
Bitcoin‘s recovery encountering selling above $27,000 can be associated with the Federal Reserve’s concern. However, long-term investors continue to accumulate without caring much about daily issues. We have discussed this in detail in today’s Glassnode report.
Bitcoin and Cryptocurrency Analysis
The direction of the market, as well as the performance of BTC, directly affects altcoins. John Bollinger mentioned yesterday that BTC is approaching an upward breakout but needs time to confirm. On the other hand, on the technical front, Bitcoin encountering sellers at the 50-day simple moving average ($27,154) indicates that bears are still in control.
The upward 20-day exponential moving average ($26,499) and the RSI data indicate that bulls are returning. If the Fed does not surprise this time, bulls can find the necessary support for a strong recovery. If the expected upward movement occurs, we may see the price rise to $28,143. As long as this level is maintained, it can trigger double-digit increases in altcoins.
However, if the BTC price falls below $26,499, in this scenario, we may see a strong selling wave down to $26,000 and $24,800. After that, we will encounter the $23,000 target that QCP and many other analysts have been mentioning for weeks.
