Bitcoin’s price saw little action Wednesday morning as traders await the FOMC meeting. Uncertainty surrounds risk appetite but potential monetary policy shifts could influence the market. Current resistance is at $100,000, with $90,000 as potential support. Long-term optimism remains as institutional trading picks up, encouraging investors to view dips as buying opportunities.
In the early hours of Wednesday, Bitcoin’s price remained relatively stagnant as traders tread carefully amid ongoing uncertainty regarding risk appetite. Market participants seem a bit fatigued, but the Federal Open Market Committee (FOMC) meeting later today could change that, depending on what Jerome Powell has to say about monetary policy. All eyes are on this press conference, as shifts in monetary policy can heavily influence the cryptocurrency market.
Currently, traders are awaiting some momentum in the Bitcoin sector, which has notably been subdued. The FOMC announcements could spark a market reaction, especially given that a more accommodating monetary policy usually favours a Bitcoin rally. The cryptocurrency emerged during a time of loose monetary policy, emphasising how crucial these upcoming statements could be for future movements.
Bitcoin has displayed some resilience over the past few weeks despite the prevailing uncertainties. This could partly be attributed to the increasing presence of institutional investors, which has given the market a semblance of stability. On the technical side, should Bitcoin manage to surge past the $100,000 mark, it could pave the way for reaching $110,000. Conversely, a decline from current levels would lead many to eye the $90,000 mark for potential support.
The $90,000 threshold is noteworthy as historical behaviour indicates it has served both as support and resistance. Market participants often refer to it as a crucial level, further cementing its role in traders’ decisions. Overall, there’s an optimistic sentiment that Bitcoin is positioned to rise in the long term, suggesting that short-term pullbacks may actually present buying opportunities rather than cause alarm. Investors might consider capitalising on dips to accumulate Bitcoin at better prices.
For those keen on staying updated with economic activities today, an economic calendar is available for reference.
Chris, a seasoned proprietary trader with over two decades of experience in various markets—such as currencies, indices, and commodities—provides valuable insights as a senior analyst at FXEmpire. Since the site’s inception, his perspectives aim to empower readers to navigate the complex financial landscape with greater confidence.
