Bitcoin has been gradually declining since forming a peak around $61k, and is now trading under $60k price levels again. There’s likely to be a big move once Powell announces the FOMC decision. Bitcoin is trading within the white zone with support at $58,455 and resistance at $60,345. These will be key levels to monitor as we approach the FOMC announcement.
Bitcoin Still Trading in the White Zone
Bitcoin did not experience any significant moves throughout the FOMC announcement. The price dipped overnight as we approached the FOMC announcement, and then rebounded throughout the day. Overall the price ended up where it started. I think BTC forms a peak around $60k – $61k then trends back down over the next few weeks. Today’s 50 bps cut is a huge red flag for the upcoming crypto bull run. I want to be very cautious over the next few months. The best case scenario is Bitcoin becomes a flight to safety like gold and rallies. The worst case scenario is a major liquidation event before a recovery.
Bitcoin has dropped back down below $60k. I think there should be concerns that the price is now trading below the white zone. In the previous 6 months this white zone was a key monthly support level where Bitcoin has closed above $60k. Today Sept is struggling to stay above $60k, and the white zone is acting as resistance instead of support. I think we form another low over the next few weeks, and it will be important to see the bullish and bearish signs of that low for determining the fate of the crypto market over the next few months. The 50 bps cut screams crisis ahead so I think we need to crash and get it over with at this point so that we can comfortably enjoy a bull run.
Bitcoin Spikes Up to $62k
Bitcoin has spiked up by $1,000+ in the past two hours, and is attempting a bullish breakout above the yellow trendline around $61,100. The price needs to stay above $61.1k to remain bullish here. If there is a successful breakout the key target is around $68,500. This could also be a bull trap, and I’m personally not taking any speculative trades on Bitcoin here. For crypto I take the stress free approach of HODLing instead of trying to trade every price swing. I still think there’s a risk of a drop in the second half of Sept, early October. Right now there seems to be a lot of volatility in the markets with price swings in both directions.
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