Bitcoin
Bitcoin Price is Facing a Major Hurdle at $26,500 Amid Fed Concerns
Bitcoin price has been struggling to break above the crucial resistance level of $26,500 for the past few days. The premier cryptocurrency has slumped by more than 13% in the month to date but remains 56% higher in the year to date. Bitcoin’s total market cap is a formidable $503 billion, down by more than 20% compared to its highest level so far this year of $612 billion. At the time of writing, the Bitcoin price was trading 1.50% lower at $25,797.25.
Fundamentals
Just like most altcoins, Bitcoin, the biggest cryptocurrency by market cap, has been in consolidation mode in recent trading sessions amid a strong bear market. Ethereum, the largest altcoin by total market cap, has been hovering below the important resistance level of $1,700 after facing a strong rejection at the level. According to Coinmarketcap, the global crypto market cap remains lower at $1.04 trillion, while the total crypto market volume increased slightly over the last day.
The Crypto Fear & Greed Index, which is a key measure of the crypto market sentiment by its participants, was at a fear level of 37 on Friday. This is a slight decline from the fear level of 40 recorded earlier this week. Additionally, it indicates that the risk appetite among investors has inched lower compared to last month’s neutral level of 49.
Focus will now be on the US Federal Reserve ahead of its two-day policy meeting slated for the 19th and 20th of September. US Treasury yields have been in the red for the past two trading sessions as investors assessed the possibility of further rate hikes by the central bank amid stronger-than-expected economic data.
Economic reports released on Thursday signaled an increase in inflationary pressures and a tighter labor market, fueling concerns that the Fed’s interest rate hike campaign might not be over yet. The US dollar is hovering around its highest level since March 2023, buoyed by the resilient US economic data. At press time, the US dollar index, which measures the performance of the greenback against other major currencies, was trading higher at 105.
According to the CME FedWatch Tool, markets are pricing in a 93% chance of the Federal Reserve leaving interest rates unchanged in its September meeting. Notably, expectations for a rate hike in November are roughly 43%. An environment of higher interest rates is usually bearish for risk assets, particularly cryptocurrencies.
Bitcoin Price Outlook
The daily chart shows that the Bitcoin price has been range-bound for the past few days, trading between the tight range of $25,300 and $26,220. The digital asset hit an intraday high of $26,445.50 earlier on Friday before pulling back. Bitcoin remains below the 50-day and 200-day exponential moving average, amid a looming death cross, which usually signals a bearish market.
Additionally, the BTC/USD pair remains below the 50-day and 200-day simple moving averages. The Bollinger bands have narrowed as seen on the daily chart, pointing to low volatility. Its Relative Strength Index (RSI) remains below the neutral zone, hinting at an increase in selling pressure.
As such, I expect the Bitcoin price to remain below the crucial resistance level of $28,000 in the short term. In particular, the range between $25,300 and $26,880 will be worth watching in the ensuing sessions. A flip above the upper range might pave the way for further gains to the 200-day EMA at $27,065. Conversely, a move below the lower range might give bears enough momentum to push the price lower to June’s low at $24,880.
BTC Price Chart
Bitcoin price was hovering around its highest level since August on Monday ahead of comments by Fed Chair Jerome Powell that could offer clues on future interest rate moves. The premier cryptocurrency hit an intraday high of $25,580, slightly above the bullish support level of $28,145, before pulling back. At the time of writing, Bitcoin was trading at $28,098.
Crypto Rally
Bitcoin price was in the green on Monday, building on previous gains after jumping more than 3% over the weekend. The asset’s total market cap has jumped by nearly 4% over the last day, while the total volume of BTC traded over the same period climbed by 192%. Major altcoins, including Ethereum, BNB, XRP, Solana, and Cardano, among others, have also edged higher.
Cryptocurrency prices started the new month on a positive note, improving market sentiment. The global crypto market cap has increased by 2% over the past 24 hours to $1.11 trillion, with the total crypto market volume up by 39.50% for the same period. Bitcoin’s total market cap has also nudged 0.77% higher to 49.57%.
The Crypto Fear and Greed Index, which measures the crypto sentiment by market participants, improved slightly to a fear level of 47, slightly higher than the fear level of 34 recorded last month. As such, the index suggests that risk appetite is rising, and a breach above the neutral level could increase the buying pressure.
While the immediate catalyst…
Bitcoin price has been relatively stable over the past few days after volatility picked up during the weekend, pushing the price lower by more than 3%. At the time of writing, the flagship cryptocurrency, Bitcoin, was trading at $26,255.55. As it continues to dominate the crypto market, ranking 1st, its total market capitalization slightly declined over the past day to $5.12 billion. Additionally, the total volume of BTC traded over the same period slumped by more than 32%.
Economic Concerns
Data published on Tuesday showed that the Conference Board Consumer Confidence Index declined in September to 103.0, down from a revised 108.7 in August. This was its lowest level since May 2023 and marked two consecutive months of decline. The Present Situation Index, which measures consumers’ assessment of current business and labor conditions, rose slightly to 147.1 from 146.7.
The Expectations Index, which measures the consumers’ near-term prospects for business, income, and labor market conditions, dipped to 73.7 in September, down from 83.3 in the prior month. The Expectations Index fell below the crucial level of 80, which signals a recession within the next year. Consumer fears of a looming recession also ticked higher in September amid the short-term economic contraction anticipated in the first half of 2024.
Focus will be on Fed Chair Jerome Powell’s speech on Thursday which is likely to add volatility and create a bearish environment for traders. As such,…
Bitcoin price jumped more than 3% on Monday, hitting its highest level since August 2023 ahead of the highly anticipated FOMC meeting. At press time, the premier cryptocurrency was trading 2.70% higher at $27,244.20. The digital asset has gained nearly 5% in the month to date and 64.71% in the year to date. Bitcoin’s total market cap has climbed by 3% over the past 24 hours to $531 billion, while the total volume of the asset traded over the same period increased by almost 100%.
Fundamentals
Bitcoin price was showing signs of recovery on Monday from the losses made in the last cryptocurrency market dip. Bitcoin flipped above the important level of $27,000, while Ethereum held above important support levels. The overall cryptocurrency market was in the green with the global crypto market cap up by 2% to $1.08 trillion for the day, while the total crypto market volume increased by more than 56%.
Even so, the Crypto Fear & Greed Index, which is a major measure of the crypto market sentiment by participants, was in a fear level of 38, almost like last week’s reading. This points to a continued decline in risk appetite by investors, which could prompt them to sell further.
Despite Monday’s bullish rally, interest rate decisions due later in the week may introduce downward pressure on cryptocurrencies. The US Federal Open Market Committee (FOMC) is slated to commence its…
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