Bitcoin price dives to k ahead of FOMC decision; bullish analyst says “we’ve seen this before”

Bitcoin price slumped nearly 5% on Tuesday, hitting lows of k as the crypto market turned negative ahead this week’s FOMC meeting.

BTC price dropped to lows of ,018 on Coinbase to wipe out gains seen when prices reached highs of ,974 last Friday.

CoinGecko data showed Bitcoin traded nearly 5% down in 24 hours. The flagship cryptocurrency has pared weekly gains and was down 6% during this period at the time of writing.

Why is Bitcoin price down on Tuesday?

The benchmark cryptocurrency’s struggles this week come after spot Bitcoin ETFs snapped a decent 19-day streak of net inflows on Monday. Data showed the sector recorded outflows of about million.

Also on Tuesday, a Bitcoin wallet that had been dormant for more than 5 years, suddenly woke up and transferred 8,000 BTC worth more than 5 million to several addresses, including Binance.

According to Lookonchain, this wallet received 8,000 BTC on December 6, 2018. The price of Bitcoin was ,810 at the time.

Risk-off mood ahead of CPI and FOMC

While price remains well above the psychological ,000 level, the upcoming FOMC minutes and Fed Chair Jerome Powell’s commentary has investors keenly watching.

It ties in with the overall macro environment, including the economic reports expected this week, and market experts have signaled this as a scenario that could feature highly on investors’ list of factors to consider.

“Markets are risk-off mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which informs the market how many cuts the Fed anticipates for the rest of 2024,” analysts at QCP Capital, a global digital asset trading firm and market maker, said.

Analyst: ‘we’ve seen this before’

Although prices could dip further ahead of these macroeconomic reports and Fed’s interest decision, pseudonymous crypto analysts Moustache and Max say FOMC has historically been bullish for Bitcoin.

“FOMC tomorrow and $BTC forms a bullish inverse head & shoulders pattern here. The past FOMC meetings have already marked the low of the left shoulder + head. Right shoulder next?” crypto trader Moustache pointed out to his 123,000 X followers.

Sharing a Bitcoin price chart with FOMC meetings mapped on it, Max notes the last three have coincided with a dip and then a bullish flip. “We’ve seen this before,” the analyst posted on X.

“Bitcoin loves to rebound after every FOMC meeting,” another crypto analyst Ali Martinez noted.

Tổng hợp và chỉnh sửa: ThS Phạm Mạnh Cường
Theo Crypto News

By Phạm Mạnh Cường

Phạm Mạnh Cường là một nhà đầu tư Tiền mã hoá và giảng dạy Blockchain ở Trường Đại học Kinh tế - Luật, Đại học Quốc gia Hồ Chí Minh, Việt Nam. Tác giả đã có bằng Thạc sĩ Khoa học máy tính từ năm 2011 tại Đại học Bách Khoa Hồ Chí Minh. Tính đến nay tác giả đã có kinh nghiệm 7 năm giảng dạy cho sinh viên về công nghệ Blockchain và 8 năm đầu tư trong lĩnh vực Tiền mã hoá từ 2016. Tác giả hiện sở hữu hàng nghìn bài viết tổng hợp, nhận định và chỉnh sửa về Tiền mã hoá và Tiền điện tử chất lượng trên Website và ở nhiều kênh khác.

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