Bitcoin Dips Below $27,000 Amid U.S. Macroeconomic Developments; Traders Remain Wary
Summary:
Bitcoin (BTC) witnessed a fall, dipping below $27,000 on September 21, amid recent macroeconomic events in the U.S. Traders and analysts have focused on maintaining the BTC value above $26,800, with some expressing caution over potential downsides. The price of Bitcoin apparently did not react to the Federal Reserve's decision to hold interest rates and markets dismissed the news about delayed payments to creditors of the defunct Mt. Gox exchange. Market sentiments remain divided about the likely direction of Bitcoin's price in the future.
On September 21, Bitcoin (BTC) dipped below $27,000 in the aftermath of recent macroeconomic developments in the United States. According to data from Cointelegraph Markets Pro and TradingView, BTC's price strength started faltering before Wall Street's trading hours kicked off, recording an approximately 1.5% drop for the day.
Bitcoin responded indifferently to the Federal Reserve's decision to hold steady on interest rates, with Jerome Powell's speech and subsequent media briefing failing to incite significant fluctuations in the market. Despite looming expectations, BTC's price did not noticeably fluctuate, suggesting the absence of influential catalysts. Moreover, market response was negligible upon learning the postponement of payments to creditors of the now-defunct Mt. Gox exchange by another year.
In a note to X subscribers, well-known trader Jelle stated, "The Fed's indication to maintain current rates was hardly a shocker. Price remains at about the same level, but we no longer have the FOMC breathing down our necks." He further proposed that Bitcoin's status will remain within this range until irrefutable evidence suggests otherwise.
However, Jelle remains optimistic about the longer-term forecast, indicating a possible upward movement out of the ongoing structure that has been intact for over a year is still plausible.
Reinforcing Jelle's perspective, Crypto Tony, another trader, stressed the significance of keeping above the $26,800 mark into the weekly close. He stated, "I aimed to extend my long positions as long as we stayed above $26,800, and we're holding that line," expressing hope for the bulls to wrap up the week with a surge.
Crypto Ed, another trader, pointed out a possible red flag in the previous month-to-date highs that coincided with the post-Fed drop. On a separate note, conservative views were echoed by analysts on longer timeframes, sticking to their predictions of an impending decline in BTC's price.
They also noted a flip of support at $27,150 to resistance on the monthly charts. "Last month, we lost the ~27150 BTC Monthly level as support. Presently, ~$27150 seems to be acting as a barrier," one of the analysts explained over the past day.
This article is purely informative and does not offer investment advice or recommendations. Each investment and trading move involves inherent risks, and readers are advised to carry out their own research before making a decision.
Published At
9/21/2023 10:07:46 AM
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