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Highlights
- The three-day fall in Bitcoin price reflects the market supply pressure remains intact.
- Federal Reserve Chair Jerome Powell announced Wednesday that the central bank could consider its first interest rate cut since the pandemic as early as September.
- The BTC price drop below the 20-day EMA sparks an initiation sign of a fresh market correction.
On Wednesday, the BTC price analysis showcased low volatility after the US Federal Reserve announced its fifth interest rate decision. During the Jerome Powell speech, no significant move was observed, but a slight decline remained due to the prevailing bearish momentum.
Fed Holds Rates Steady in July 2024
The U.S. Federal Reserve announced its latest decision on interest rates on July 31, 2024, following a two-day Federal Open Market Committee (FOMC) meeting. The central bank decided to maintain the federal funds rate within the range of 5.25% to 5.50%, which aligns with market expectations. This marks the seventh consecutive meeting where rates have been held steady after a series of aggressive hikes that began in March 2022 to combat inflation.
Holding rates steady can bolster investor confidence, as it indicates a measured response to current economic conditions rather than a sudden shift in monetary policy. FOMC statement-
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. The Committee judges that the risks to achieving its employment and inflation goals continue to move into better balance. The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate.
BTC Price Analysis: Fall Looms with Wedge Pattern
During Federal Reserve Chair Jerome Powell’s speech on Wednesday, the Bitcoin price remained stable at around $66,000. However, supply pressure soon returned to the crypto market, resulting in a more than 2% drop in Bitcoin to $64,750, with its market cap decreasing to $1.278 trillion.
This downturn signifies a significant shift in BTC price analysis, occurring at the resistance boundary of the broadening wedge pattern. This chart formation is characterized by diverging trendlines that have governed its consolidation trend for the past four months.
Historically, reversals from this pattern’s resistance have led to significant corrections testing the lower boundary. The Moving Average Convergence Divergence (MACD) nearing a bearish crossover suggests that further selling pressure could prolong the price correction. If the selling continues, BTC price forecast targets drop to $63,370, followed by $60,000.
Conversely, the daily Exponential Moving Averages (EMAs) for 50 and 100 days, currently near $63,370, might provide support and prevent a further downturn. If this potential reversal fails, it could pave the way for a breakout from the wedge pattern, enabling BTC to surpass its previous high of $73,680.
Frequently Asked Questions (FAQs)
1. What is the federal funds rate?
2. What does market supply pressure in crypto market?
3. Is BTC Price Ready for new All-time-high(ATH)?
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