Upcoming FOMC Meeting on June 18: Expected Impact on Bitcoin Values
Get ready for the FOMC meeting on June 18, as the cryptocurrency market is more volatile than a roller coaster. With Bitcoin dipping to $104,000 after a 24-hour change of -2%, investors are on edge due to the high probability of a Fed rate pause.
If the Fed decides to keep rates unchanged, it could spell a short-term hawkish situation for the crypto market. Translation: a temporary pullback is on the horizon. So, let's dive into how this could impact Bitcoin's price for the upcoming week!
Bitcoin Price Technicals Sending Mixed Signals
Bitcoin has formed a triangle pattern in the daily time frame since mid-April, and its current listing price is $104,366.42 with a market dominance of 63.78%. The Stoch Relative Strength Index (RSI) has recently dropped below the overbought range, suggesting an increase in negative price convergence. However, if both averages plunge below the neutral point (50), it confirms a weakening action, which may lead to a short-term trend shift.
The Bollinger Bands (BB) are indicating a retest by the Bitcoin price toward its upper band during the recent rally. Although a breakout would have suggested a bullish scenario, the trend reversed bearishly and is now testing its middle band as its immediate support. Additionally, a bearish action could result in Bitcoin retesting its lower band around the $101,700 mark. The expanded bands suggest high volatility in the crypto market, pointing to a potential reversal in the near future.
Will Bitcoin Test $102K or $107K First?
A trend reversal due to an unexpected outcome during the FOMC meeting could cause Bitcoin to retest its immediate resistance level of $107,218 shortly. A sustained action around that range could lead to Bitcoin testing its All-Time High (ATH) of $111,970 this month.
Conversely, if the bears maintain their dominance in the crypto market, this could result in Bitcoin dropping toward its $102,470 mark, which is also the support of the triangle pattern. If the bulls fail to regain momentum at that point, the value of Bitcoin could plunge towards the $100,000 support or lower support of $97,380 respectively.
Related Reading: The U.S. Actually Met Satoshi in 2019? A Lawsuit Claims So
In addition to the FOMC meeting, Bitcoin enthusiasts might be intrigued to take a look at the lawsuit claiming the U.S. government met Satoshi Nakamoto, the anonymous creator of Bitcoin, in 2019.
- If the Fed maintains the rate pause, the potential pullback in the crypto market could impact Bitcoin's price, with a possibility of a short-term trend reversal towards the $101,700 mark, as indicated by the Bollinger Bands and the Stoch RSI.
- After the FOMC meeting, if Bitcoin's price retests its immediate resistance level of $107,218, a sustained action around that range may lead to a test of its All-Time High ($111,970) this month, potentially influenced by the impact of the Fed's decision on the finance and technology sectors, including the cryptocurrency market.
