Bitcoin price is struggling to uphold its position at $27,000 support in the wake of the Federal Open Market Committee (FOMC) meeting, which as expected left interest rates unchanged for September.
The regulator kept the course open for at least one more rate hike before the year ends and subsequently fewer cuts than it had previously outlined for 2024. Jerome Powell, the Fed Chair said that the regulator is “in a position to proceed carefully in determining the extent of additional policy firming.”
There were no sudden reactions from investors following the announcement as the rate hike pause was expected and already priced in. However, there is evidence of a trendless trading period likely to follow as long as bulls refuse to let go of the $27,000 support.
Where Is Bitcoin Price Headed?
Santiment, an on-chain analytics platform, believes that unchanged interest rates are a positive signal for Bitcoin and the crypto market.
“Crypto market caps have held up well, despite the SP500 plummeting to 4-week lows. A promising correlation break sign,” Santiment said via a post on X.
The early week rejection immediately after Bitcoin price touched the $27,200 level implied vulnerability and a possible pullback. Bulls have the opportunity to keep declines at bay with support at $27,000 remaining solid.
However, the uptrend is not strong enough to rule out a retracement to collect liquidity, especially with Bitcoin price currently holding below the 21-day Exponential Moving Average (EMA) (red).
If bears set camp at $27,000, the path with the least resistance will flip to the downside, where the 200-day EMA (purple) will try to absorb the selling pressure at $26,710 and the 100-day EMA) at $26,519. Further losses would aim for $26,000 and the major support at $25,000.
Based on the position of the Moving Average Convergence Divergence (MACD) indicator, sellers may soon have the upper hand. The call to traders to consider closing their long positions to short BTC manifests with the blue MACD line crossing beneath the red signal line.
Renowned analyst and trader, Rekt Capital, believes that Bitcoin price is on the cusp of a natural correction from resistance at $27,150. With this “old support acting as new resistance,” a significant retracement is bound to follow.
#BTC update when it comes to the Monthly level of ~$27150
Old support now acting as new resistance$BTC #Crypto #Bitcoin https://t.co/rkRsoC1ILt pic.twitter.com/TmWfJguaDB
— Rekt Capital (@rektcapital) September 21, 2023
The Bitcoin bearish fractal, discussed earlier this week affirms the plausible correction. A bearish fractal allows BTC price to rise sharply before hitting a resistance and retracing to sweep through fresh liquidity ahead of another significant climb.
Bitcoin Bearish Fractal Update$BTC #Crypto #Bitcoin https://t.co/4H3OMiDzFB pic.twitter.com/Gn3iH75DFw
— Rekt Capital (@rektcapital) September 21, 2023
That said, traders would be in a better position to avoid losses if they keep their eyes on several key levels including the resistance at $27,200, support/resistance at $27,000, $26,000, and $25,000.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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