At a time when the spot Bitcoin ETF mania is gripping the crypto market, the Bitcoin (BTC) price continues to remain in the relatively weaker zone. However, analysts predict that a show of strength around certain price points could mean the cryptocurrency has underlying recovery strength.
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Bitcoin continues to predominantly remain at the below the $26,000 level over the last 30 days whereas the cryptocurrency lacks support below the $25,400 mark. In this context, Mike McGlone, senior macro strategist at Bloomberg, said that with the momentum metric pointing downwards currently, it would take Bitcoin a strong reversal trend to get back to bullish ways. “Our bias is to respect the trend until proven otherwise.”
McGlone explained that BTC sustaining above the 100 week mean just over $30,000 would indicate recovery strength. Owing to the recent Court judgment granting Grayscale‘s motion for conversion of its Bitcoin Trust into a spot Bitcoin ETF, the BTC price saw a sharp spike on August 29, 2023. However, it was only short lived after the US SEC delayed the decision on the Bitcoin ETF applications by the likes of Blackrock, Bitwise and Fidelity.
In the near term, the Bitcoin price could witness volatility around the Federal Open Market Committee (FOMC) meeting scheduled for September 19-20, 2023. According to the CME FedWatch Tool, traders foresee a 93% chance of the US Federal Reserve maintaining the current target rate of 525-550 bps. Going by the recent FOMC meetings and the surrounding BTC price movements, there may not be much volatility if the Fed officials announce a no rate hike decision. However, traders would be looking for Fed Chair Jerome Powell’s statement on the forecast for upcoming meetings.
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