Bitcoin’s Retracement ahead of Halving
Bitcoin's price is still dropping and maybe experiencing retracement before the halving. The upcoming FOMC meeting could move the dial.
Bitcoin’s (BTC) pullback has already started, as it drops below $63,000 and continues to fall away from its record high.
Is this retracement for Bitcoin just before the halving event? It looks like it, as the coin has been bearish for the last five days and is now in a sharp decline. Bitcoin has lost more than 13% in the last week and more than 8% since yesterday, now down to $62,511 (BTC/USD).
It is entering a danger zone now where a new resistance level could be set up that will be difficult for the coin to overcome. What looked like a temporary setback for the coin over the last few days has turned into a longer than expected bearish trend. Now with the severe drop-off we are seeing Tuesday morning, it looks like Bitcoin may have trouble getting back above $70,000 anytime soon.
The bulls are hurting and cannot keep control of Bitcoin despite the work of some very dedicated crypto whales that have been buying large amounts of Bitcoin up this month as the price neared a new high.
How FOMC Meeting Could Affect Bitcoin’s Price
On Wednesday, the FOMC meeting will be held, and the Federal Reserve will make a few remarks about inflation, the jobs market, economy, and interest rate cuts, according to expectations. These statements will likely be a mix of negative and positive sentiments, and the Federal Reserve will likely hold off on interest rate cuts. However, if the meeting goes a different way than expected, the Bitcoin price may shift quickly in response.
Bitcoin is in a precarious position right now, where it could possibly stay below $70,000 for a while if investor confidence drops out during this bearish trend. Most analysts will say it is bound to recover very soon and keep pressing on toward $100,000 this year but this week’s downturn is likely to strike a blow to Bitcoin’s ability to rally quickly.
Expect mixed sentiment for a while, even with the bulls pushing Bitcoin to get back above $70k. This week has simply reinforced the idea that Bitcoin and cryptocurrency is no sure bet and will continue to be volatile beyond most people’s ability to accurately predict.
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