Bitcoin Market Remains Indifferent to Federal Reserve Actions: Examination of Trading Behavior
The crypto market has been experiencing a sideways trend since June, with a slightly upward trajectory, as of recent reports. Bitcoin price, the leading cryptocurrency, is currently trading at around $115,500.
The top 20 cryptocurrencies have seen an average performance slip of 0.43% in the past 24 hours. However, the overall crypto market is down less than 1% in the same period.
Bitcoin's price opened at $116,836 but dipped to a low of $114,747 after the Federal Reserve's announcement of a 25bps cut in an 11-1 vote. The Fed Chair, Jerome Powell, characterized the cut as 'risk management' rather than a move aimed at shoring up a weak economy.
The political drama surrounding the Fed decision added another layer of uncertainty to the stock market today. Newly installed Federal Reserve Governor, Stephen Miran, was the only policymaker voting against the quarter-point move, instead advocating for an even larger half-point cut.
Despite the short-term dip, key support levels for Bitcoin remain at $113,700 (EMA50), $108,000 (recent consolidation base), and resistance levels are at $119,000 (recent rejection zone) and $124,621 (all-time high).
The Relative Strength Index (RSI) for Bitcoin currently stands at 58, indicating a neutral to bullish stock market. On the other hand, the Average Directional Index (ADX) for BTC is at 18, suggesting a neutral market with no clear trend.
Predictors on Myriad believe there's a 61% chance Bitcoin price will rise to $125K before falling back to $105K. They also believe there's an 80% chance Bitcoin price will stay above $105K throughout September.
The Crypto Fear and Greed Index remains almost perfectly neutral at 51 points. Despite the sideways trading, Bitcoin price has gained momentum since dropping below its 50-day average price of $110,000 in late August.
The key question now is whether the Fed's signal of two more cuts before year-end will reignite risk appetite or if concerns about inflation and political interference will keep buyers on the sidelines.
Please note that the views expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. For specific advice tailored to your situation, it is recommended to consult a financial advisor.
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