Bitcoin's price fell by 3% ahead of the US Federal Reserve meeting, leading to cautious strategies among traders.
Decline in Cryptocurrencies
The downturn in the cryptocurrency market triggered a chain of liquidations in the derivatives markets. While positive news and previous support levels tried to hold the price around $84,000, the increasing selling pressure caused a retreat below this level. It is suggested that if selling pressure persists, Bitcoin could approach the $78,000 mark.
Fed Decision and Market Uncertainty
The impending U.S. Federal Reserve interest rate decision creates uncertainty in the markets, reducing traders' risk appetite. The current downward trend may persist for an extended period following the Fed’s decision. Technical indicators emphasize the critical role of support and resistance levels. Although the Fed is not expected to cut rates in this meeting, it will share its three-year interest rate projections, marking a significant event of the month.
Recommendations for Traders
Market analysts advise traders to make decisions based on economic developments and the Fed’s announcements. In this context, carefully examining the current technical situation and past selling patterns may prove beneficial.
Investors and traders should remain attentive to market shifts and economic events amid the volatile situation.
