FOMC

Jerome Powell

Chair

Bitcoin

Material

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) saw volatility at the July 31 Wall Street open as markets braced for United States macro events and the monthly close.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/44c7c353-9a5f-45c6-a51d-c1b32d7103aa.png" alt="Bitcoin traders see $63K sweep with FOMC, BTC price monthly close next" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="bitcoin-wobbles-ahead-of-fed-s-powell">Bitcoin wobbles ahead of Fed’s Powell</h2>
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA..">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> showed daily highs of $66,814 on Bitstamp ahead of the Federal Reserve’s decision on interest rate changes.
Markets do not expect the Federal Open Market Committee (FOMC) to alter rates until September, data from CME Group’s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener nofollow">FedWatch Tool</a> confirms, but it is subsequent commentary from Fed Chair Jerome Powell on traders’ radar.
“We anticipate increased volatility ahead of tonight’s FOMC. We do not expect a cut and place higher importance on the statement and Powell’s presser after,” trading firm QCP Capital wrote in its latest bulletin to Telegram channel subscribers. 
<blockquote data-ct-non-breakable="true">
 “Our base case is for 1 cut in September and December each. We remain wary of a deviation from current expectations, which would trigger risk-off moves across all assets, including crypto. Such a scenario would indicate the Federal Reserve's perception of heightened economic challenges.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/d713aced-b6e8-4d1f-bb9f-a31c9cd21780.png" alt="Bitcoin traders see $63K sweep with FOMC, BTC price monthly close next" title="">
 <figcaption style="text-align: center;">
 Fed target rate probabilities. Source: CME Group
 </figcaption>
</figure>
Other macro data on the day emphasized the chance of that scenario playing out. In Europe, eurozone inflation quickened to 2.6%, beyond expectations of 2.5%.
“Core inflation in Europe hit 2.9%, above expectations of 2.8%,” trading resource The Kobeissi Letter <a href="https://x.com/KobeissiLetter/status/1818574204783989148" target="_blank" rel="noopener nofollow">wrote</a> in part of a reaction on X.
<blockquote data-ct-non-breakable="true">
 “Inflation is back on the rise in Europe.”
</blockquote>
As <a href="https://cointelegraph.com/news/magnificent-seven-stocks-shed-2-6-trillion-busy-earnings-week">Cointelegraph reported</a>, major tech stocks continue to come under pressure as a week of earnings reports fails to lift the mood.
<h2 id="moving-average-becomes-key-btc-price-support">Moving average becomes key BTC price support</h2>
Turning to Bitcoin itself, Keith Alan, co-founder of trading resource Material Indicators, was firmly in “wait and see” mode ahead of the Fed and monthly candle close.
Related:&nbsp;<a href="https://cointelegraph.com/news/btc-price-lower-highs-bitcoin-bears-control-70k">BTC price lower highs keep Bitcoin bears in control at $70K</a>
“Whatever the case, it’s safe to say that we have a recipe for volatility through the Monthly candle close/open,” part of X analysis <a href="https://x.com/KAProductions/status/1818284823229649128" target="_blank" rel="noopener nofollow">summarized</a> on July 30.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/e20e1b02-db3b-40f0-85af-5de999f8b984.png" alt="Bitcoin traders see $63K sweep with FOMC, BTC price monthly close next" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-week chart with 21SMA. Source: TradingView
 </figcaption>
</figure>
Alan highlighted the 21-week simple moving average (SMA) at $65,700 as the key level to hold in the event of downside volatility.
“Losing the 21-Week MA would open the door to fill some CME Gaps, but at the moment we do have some bid support laddered in the $63k - $65k range,” he wrote, referring to “gaps” between open and closing prices on CME Group’s Bitcoin futures market. 
<blockquote data-ct-non-breakable="true">
 “Needless to say, the market is waiting for Powell to drop some hints and the Monthly close.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/c8e429e5-0259-4ca8-b1d2-fa2e737f9db3.png" alt="Bitcoin traders see $63K sweep with FOMC, BTC price monthly close next" title="">
 <figcaption style="text-align: center;">
 BTC liquidation heatmap (screenshot). Source: CoinGlass
 </figcaption>
</figure>
Data from monitoring resource <a href="https://www.coinglass.com/pro/futures/LiquidationHeatMap" target="_blank" rel="noopener nofollow">CoinGlass</a> showed order book buy liquidity increasing around $65,500 at the time of writing.
“I was expecting Bitcoin to provide us with a bit more of a bounce yesterday, but ultimately I’m still looking for that 63k range low to get swept,” popular trader Mark Cullen <a href="https://x.com/mark_cullen/status/1818501886116266206" target="_blank" rel="noopener nofollow">continued</a>, hoping for a liquidity sweep through a <a href="https://cointelegraph.com/news/bitcoin-analysis-warns-btc-price-liquidations-will-start-below-64k">key long BTC cluster</a>. 
<blockquote data-ct-non-breakable="true">
 “Currently BTC is sitting at the median of the range, but I’m expecting more volatility today with the FOMC rate decision looming.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/cdad7de8-ce22-46ea-8ad6-0f751528108e.png" alt="Bitcoin traders see $63K sweep with FOMC, BTC price monthly close next" title="">
 <figcaption style="text-align: center;">
 BTC/USDT chart. Source: Mark Cullen/X
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin traders see $63K sweep with FOMC, BTC price monthly close next

Obsah

Cointelegraph

Ďalšie články zverejnené 31. 7. 2024

Innovative Features And Future Vision Of AAS Ecosystem

India’s BWA Moves To Prevent WazirX Related Hacks

Experts made their choice: ADA and XRP are cooked, RWA tokens is your chance to prosper this summer

Aquanow Crypto Brokerage: VARA Approval Signals New Era in Crypto Trading

Crypto Regulations Favor Market Growth

T-Mobile Reports Q2: Beats EPS Expectations by $0.21

Pripojte sa k nášmu bezplatnému bulletinu a získajte denné aktualizácie kryptomien!