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Bitcoin is currently facing a crucial resistance level, with a new bearish signal appearing in the short term. The outcome of the upcoming Fed meeting, set to take place in just a few hours, could also impact the market. The Fed will soon announce its decision on interest rates, scheduled for 6:00 PM GMT on September 18th.
The market is largely expecting a rate cut, with futures pricing in a 37% chance of a 0.25% reduction and a 63% chance of a 0.5% cut. The current high end of the Fed funds rate is 5.5%, and most expect it to drop to 5% after the decision.
According to analyst Josh of Crypto World, if the Fed cuts rates by 50 basis points (0.5%), it would be bullish for the market since not everyone has anticipated this outcome. However, if the cut is only 25 basis points (0.25%), it could lead to a bearish reaction as the market has mostly priced in a larger reduction. As we approach the Fed meeting, the market may experience volatility, given the uncertainty around the outcome.
Bitcoin Price Prediction:
Looking at Bitcoin’s charts, the price is currently approaching a key resistance zone between $60,000 and $61,000. If Bitcoin breaks above this level and holds, it could target $63,000 next, with further resistance at $64,500 and $67,000–$68,000. On the downside, support levels are at $59,500, $58,000, and between $56,000–$57,000.
While the short-term trend for Bitcoin remains bullish, it’s happening within a larger bearish trend. Additionally, a new bearish divergence has appeared on the 8-hour chart, suggesting Bitcoin is losing bullish momentum. This divergence could lead to a pullback or sideways movement, especially if the Fed’s decision results in only a 25 basis point rate cut.