The U.S. Federal Reserve made the much-anticipated decision to maintain monetary policy on Wednesday, maintaining the 5.25% to 5.50% range for its benchmark interest rate.
Fed officials also predicted that interest rates will remain higher for the remainder of the year at roughly 5.1%, a considerable increase from the June projection of 4.3%. They predict faster economic growth this year, with real GDP expected to climb by 2.1% as opposed to the 1% anticipated in June.
Following the central bank’s announcement, the price of Bitcoin (BTC) held stable at roughly $27,200, but then fell by about 1% to $26,900 as Fed Chair Jerome Powell stated in a news conference that the central bank will continue raising interest rates if the economy continues to perform better than anticipated.
Above the $26,800 barrier level, the price of bitcoin began to rise once more. BTC continued to trade strongly and even closed above the $27,000 pivot point.
The $27,500 zone, though, is still a busy area for bear activity. Near $27,494, a high has formed, and the price is currently consolidating gains. It is currently trading close below the level of the 23.6% Fib retracement of the upward movement from the swing low of $26,657 to the high of $27,494.
On the upside, there is immediate resistance close to the $27,450 mark. The $27,500 area is the first significant resistance, and if it is crossed, the price may begin another uptrend. The $28,200 level may serve as the next significant obstacle. The price might rise toward the $29,500 level with a clean move above the $28,200 resistance. In the hypothetical situation, the price might even test the $30,000 mark during the next few days. Analysts on Twitter continue to support the short term volatility view.
Source: Twitter
The majority of Fed members, according to Powell, think that one more rate hike is more likely than not appropriate to achieve the Fed’s objective during the next two Federal Open Market Committee (FOMC) meetings. In addition, he agreed that the recent inflation trend is positive, describing the last three months’ readings as “very, very good.”
What’s next for $BTC?
The $27,500 resistance level could act as a barrier to further gains for Bitcoin, which could trigger a downward reversal. However, there is immediate support close to the $27,050 mark.
BTC 1-day Price chart. Pic Credit: Trading View
Near the trend line and the $26,800 mark is the next significant support. It is around the level of the 76.4% Fib retracement of the upward movement from the swing low of $26,657 to the high of $27,494. Price movement can go towards the next support around the $26,200 level if the downside breaks and closes below the $26,800 level.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
