The Bitcoin market has recently experienced a heart-stopping tumble, with its price flirting dangerously close to the $28,000 mark. The nosedive from $30K has already sent shockwaves through the market, triggering fears of a massive correction. As the Federal Open Market Committee (FOMC) meeting approaches, investors are holding their breath, waiting to see how the Fed’s decision will impact the already volatile cryptocurrency market.
Upcoming FOMC Meeting Is Set To Shake Up BTC Price
The US Federal Reserve is anticipated to increase interest rates by 25 basis points, reaching a range of 5% to 5.25%, the highest level seen since 2007. The crucial FOMC meeting is scheduled for May 2-3, with Fed Chairman Powell set to make the announcement on May 3.
As the week commenced, Asian markets experienced a potential volatility trigger when the U.S. government sold First Republic Bank to JPMorgan Chase. Concerns about the legitimacy of the transaction led to First Republic becoming the second-largest bank failure in U.S. history.
Contrary to its response to the beginning of the banking crisis in March, Bitcoin displayed minimal interest in emulating this situation. Instead, it continued to trend downward, despite cautionary signals that another financial institution could already be facing difficulties.
Numerous analysts are predicting a short-lived upward correction in Bitcoin’s price ahead of the meeting, followed by a sharp decline in the aftermath of the interest rate announcement. This decline is expected to result from the US dollar’s increased strength. With Bitcoin investors and traders on high alert, the upcoming FOMC meeting will surely be a nail-biting event.
Expert Outlines BTC Price’s Next Move
The extended bearish candle on Bitcoin’s price chart indicates that sellers are vigorously defending the $30,000 resistance level. Though the price dropped dramatically, a small positive aspect is that buyers are tenaciously safeguarding the $28K support level. This implies that the Bitcoin price might oscillate between $27.5K and $30K for some time.
Typically, a period of narrow-range trading is followed by a range expansion. If the price continues to decline and falls below $28K, the price could drop to the critical support at $26.5K.
Conversely, if the range expands above $30,000, the BTC price will likely climb to $31,000 and then to $32,200. A breakthrough above this level would signal an increase in momentum.
As of writing, Bitcoin price trades at $28.2K, declining over 5% in the last 24 hours. A prominent crypto analyst, Michael Van De Poppe, predicted that Bitcoin might go into a correction during the FOMC meeting. According to him, Bitcoin might take support at $27.8K and then jump above its 38.6% Fib level at $29K after the FOMC meeting.
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