Bitcoin: Key Levels at 57K – Bounce or Break?

Bitcoin is hovering near its lowest levels in two months as the US market awaits the next move by the Federal Reserve. The cryptocurrency’s volatility has eased ahead of the Fed’s interest rate announcement and Jerome Powell’s subsequent press conference. After the recent Quarterly Refunding Announcement impacted the US liquidity outlook, market participants hope that Powell’s tone will not be too hawkish. Many expect the Fed to continue with its “higher for longer” policy stance. The odds of the Fed maintaining its current interest rates are at 99%, according to CME Group’s FedWatch Tool. Despite the recent drop in Bitcoin and altcoin prices, some traders believe that the worst losses may be over.

Traders are keeping an eye on two key events—the FOMC meeting and the QRA. If Powell adopts a dovish stance, it could turn the market sentiment bullish. Heavy issuances of US bills during the Quarterly Refunding Announcement could reduce fears of a spike in longer-term interest rates and potentially slow down the US dollar rally. Bitcoin traders are closely monitoring price levels after multiple support lines have been broken. The current retrace is lasting longer than usual, with popular trader Rekt Capital noting that retracements in previous bull markets lasted between 2-3 weeks or up to 2 months. Filbfilb, co-founder of DecenTrader, believes that Bitcoin could follow a similar path to gold and experience a resurgence in the coming months.

Ravi Marable

Ravi Marable

7 thoughts on “Bitcoin: Key Levels at 57K – Bounce or Break?

  1. I’m excited to see how Bitcoin performs in the coming months. Fingers crossed for a resurgence!

  2. If Powell adopts a dovish stance, it could mean good news for Bitcoin!

  3. It’s interesting to see that retracements in previous bull markets lasted for weeks or even months. We might be in for a longer retrace this time.

  4. The Fed better not make any hawkish statements, I can’t handle another blow to the market

  5. Hoping for a balanced and reassuring tone from Jerome Powell during the press conference.

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