Bitcoin (BTC) is experiencing a downward trend in the week of March 19. This has led traders and analysts to speculate on where the price of BTC could end up. Despite reaching new all-time highs, Bitcoin is now testing levels that were recently established as support. However, a stable floor has not been found yet.
Market observers are now focusing on more fundamental factors and considering the possibility of a relief bounce. Some believe that the decision on interest rates by the United States Federal Reserve, which is scheduled for March 20, could alleviate the pressure on oversold crypto assets. Historically, the run-up to Federal Open Market Committee (FOMC) meetings has resulted in the suppression of risk assets.
In terms of short-term predictions for BTC/USD, there are several popular theories. One trader, George, believes that BTC price will at least reach the low of the previous week. Another trader, Ali, analyzed the realized price distribution (URPD) to identify key support levels, including $61,100, $56,685, and $51,530.
Using Fibonacci retracement levels, analyst Mark Cullen identified multiple support levels that could come into play. He also highlighted a “bullish order block” of bids at the current spot price below $64,000. Cullen mentioned that the correction’s end will depend on the outcome of the FOMC meeting.
The FOMC meeting is not only important for Bitcoin and altcoins but also for the broader risk-asset spectrum. Financial commentator Tedtalksmacro suggests that any further decrease in price before the meeting will result in a higher rebound when Fed Chair Jerome Powell speaks. Tedtalksmacro believes that Powell will adopt a hawkish tone to reset market expectations of a rate cut.
Currently, BTC/USD is volatile around $64,000. This article emphasizes that it does not provide investment advice, and readers should conduct their own research before making any decisions.