Summary of the Article
- The Bitcoin price has been stuck in a narrow range, signaling the possibility of a healthy accumulation before the next drastic move.
- Ahead of the FOMC meeting, some BTC wicks may be formed which could indicate the end of the correction.
- Onchain activity is rising as monthly average of new wallets have exceeded yearly average, suggesting a bullish reversal after testing lows.
Bitcoin Price Tests Crucial Support Levels
The bitcoin price dropped recently below the multiweek trading ranges, indicating that buyers may suffer more losses in the coming days. After maintaining a steep bearish trend since the early trading hours, the BTC price is now recording some marginal gains. Meanwhile, other altcoins continue to trade under bearish influence which suggests that market reversal may be near.
FOMC Meeting Ahead
With FOMC meeting on horizon, bitcoin fails to induce required volatility and continues to trade between pre-defined range of $29,400 and $29,000. Most experts believe another 25 basis points rise by nearly 98% of market so no large variation expected but only if FED chair Jerome Powell mentions something unexpected then notable drop can be triggered. According to analyst Michael van de Poppe ,BTC price can fall to new monthly lows near $28,500 due to GDP and PCE.
Possibility of Bullish Reversal After Testing Lows
Trade setup suggests possibility of bullish reversal after testing lows which could lift price back above $30k. Rising onchain activity is also an indication as monthly average of new wallets have exceeded yearly average. This suggests that there is significant number of investors entering crypto space for long term investment thus providing strength against downward pressure from whales and institutional players.
Overall it looks like Bitcoin will remain volatile this week due to FOMC meeting but traders should keep an eye out for any major developments during this time period which can either trigger downside break or upside breakout depending upon outcome from meeting and other factors such as economic data releases etc. If prices manage to stay within current range then we can expect further bull run towards all-time highs once current correction phase fades away