Bitcoin Prepares for Turbulence Ahead of FED Decision: What Comes Next?
Bitcoin experienced a positive boost last week, lifting investor spirits, but the momentum has shifted as a new week begins. The cryptocurrency market is entering a pivotal period filled with uncertainty, largely due to the looming decision on interest rates by the Federal Reserve.
The positive sentiment that characterized last week’s Bitcoin rally, temporarily alleviating fears, was short-lived and quickly replaced by apprehension on Sunday, September 15th, as concerns mounted regarding the upcoming Fed announcement.
Despite briefly surging above the $60,000 mark, Bitcoin quickly retraced, reinforcing the pattern of lower highs that has defined its price action in recent months.
While Bitcoin managed to maintain a price level around $58,875, a weekend downturn has drawn attention to a critical juncture for the digital asset, with the formation of lower highs signaling a potential weakening of the bullish momentum.
If bearish sentiment continues to weigh on Bitcoin, a break below the $50,000 support level could be in the cards, marking a significant shift in the cryptocurrency’s price trajectory.
Conversely, the upcoming Fed announcement on interest rates could serve as a catalyst for Bitcoin’s resurgence. A positive market response to aggressive rate cuts may reignite demand, propelling Bitcoin back towards the $70,000 price range and beyond.
Bitcoin Market Activity Slows: Calm Before the Storm?
Recent Bitcoin metrics suggest a growing sense of caution among market participants, as evidenced by a notable decrease in the number of large transactions in the past few days.
On September 13th, approximately 17,580 large addresses were recorded, a figure that dropped to 12,520 by September 15th, indicating a decline in significant market activity.
Moreover, exchange flows have tapered off since September 13th, with inflows marginally surpassing outflows, hinting at heightened anticipation surrounding the Fed’s impending announcement.
Political events have also exerted influence on Bitcoin’s price volatility, with recent reports hinting at potential political turmoil likely to impact the cryptocurrency market in the coming months, pushing Bitcoin towards a critical juncture.