Bitcoin (BTC) Stays Strong Amid FOMC Dip: Price Analysis

Going into the Federal Reserve FOMC meeting markets were somewhat nervy, even though the lack of rate cuts played out completely as expected. Going into the meeting, during, and afterwards, the Bitcoin price took a dip below $116,000. However, now back above $118,000, Bitcoin bulls are debating their next move. Up or down from here? Ascending trendline holds firm – breakout approaches Source: TradingView The 4-hour chart shows the small dip below the ascending trendline. That said, it can be seen that this trendline was respected by the longish candle wick, providing evidence of strong buying once the price had dipped below. This means that the price action is still being herded into the narrowing space between this trendline and the top of the bull flag. A breakout in either direction should take place by the end of this week, or early next week. The shorter term Stochastic RSI (momentum) indicators are all moving up from the bottom, so there is the possibility that an upside breakout could take place, and probably sooner rather than later. One more thing that needs to be taken into account is that FOMC meetings are very often used by market makers for cover in order to manipulate the market – more often than not in both directions. Bollinger Bands signal big move about to happen Source: TradingView One indicator that is signalling a significant price move ahead is the Bollinger Bands. On the daily time frame it should be noted that the bands are contracting right now. The only other time since 2023 that the Bollinger Bands have been this tight on the daily time frame was in February of this year. This led to an initial 20% correction, which worsened to 24% before the price went back into an upward trend. Therefore, it would appear that a large move is probably just around the corner. This could be down as well as up of course, but given that the current price action is inside a bull flag, the balance of probabilities point to an upside move. Nevertheless, a downside shakeout could take the market completely by surprise, so this must be counted as a possibility. Weekly and monthly closes will be significant Source: TradingView When looking at the weekly chart things perhaps look a little concerning as far as the Stochastic RSI indicators are concerned. The indicators are very much posturing a cross-down, potentially signalling negative price momentum, which could be confirmed at the end of this week. For this reason, if one looks at the 5-day chart instead, what could be a more reliable picture emerges, as the 5-day chart foreshadows the weekly chart. Here we can see that the indicator lines are very much in the balance. Yes, the orange, slow line is on top, but some positive price action into the end of this week could result in the blue, fast line crossing back on top. If the bull market is to continue, these kinds of positive shifts in the Bitcoin price will need to happen. A significant shakeout could still take place, but if the bull cycle does end in Q4 this year, Bitcoin could be running out of time for one last really big move to the upside. The approaching weekly and monthly candle closes need to be positive. The clock is ticking. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Source: Crypto Daily