Bitcoin: Range extension on the cards until Fed’s decision

Bitcoin: Range extension on the cards until Fed’s decision

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • BTC continued to defend the range-low near $25.8k.
  • Fed’s decision on 20 September could induce some volatility. 

Interest rate traders are keenly preparing to exploit Bitcoin [BTC] price swings ahead of the FOMC (Federal Open Market Committee) Meeting on 20 September. There is expected market volatility before and after the Fed rate announcement. 

Is your portfolio green? Check out the BTC Profit Calculator 

Over 90% of traders polled were inclined towards an unchanged Fed rate target range of 5.25% – 5.5%. So, a repeat of the June price action couldn’t be overruled if the Fed pauses the rate hike. 

BTC fronted an impressive recovery in mid-June after the Fed pause rate hike alongside hype around ETF (Exchange-traded fund) filing from BlackRock and other firms.  

What’s next for BTC price action?

Bitcoin price analysis

Source: BTC/USDT on TradingView

After the mid-August dump, BTC price action was muted near the range-low of $25.8k. The 6% pump on 29 August was catalyzed by Grayscale’s win against the US SEC. But the win was short-lived, exposing BTC to a retraction to the range-low again. 

The retraction left a price imbalance of $26.1k – $27.0k (white). Besides, price action was below the 50-EMA (Exponential Moving Average) and could act as a dynamic resistance before the Fed’s decision. So, BTC could attempt to fill the price imbalance and retest mid-range near $27k if the Fed’s decision is favorable. 

Conversely, sellers could gain more leverage if they crack the daily bullish order block (OB) of $24.8k – $26k (cyan). Such a move could ease at the next support and weekly bullish OB of $21.4k – $23.45k (cyan). 

Meanwhile, the RSI struggled to cross above the 50 mark since mid-July, reinforcing weakened buying pressure. The CMF also followed RSI’s trend but crossed above zero on 4 September, indicating capital inflows to the BTC market improved in the past week. 

How much are 1,10,100 BTCs worth today?

Massive buy and sell limit orders at $25k and $28k

Bitcoin price analysis

Source: Mobchart

According to Mobchart, a real-time order tracking platform, significant buy and sell limit orders were placed at $25k and $28k, respectively, at press time. It shows that BTC wild price swings could see a reversal at these levels.

However, Ethereum [ETH] could outperform BTC in the short to mid-term as ETH ETF approval is expected as early as October in the US. 


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