Other assets such as stocks and bonds that were traded within a close range on Wednesday, as bitcoin, altcoin, and market have been waiting for the first interest rate decision of the year.
Bitcoin (BTC) was traded for $ 102,000, and popular ALTCOINS, such as Ethereum (ETH), Ripple (XRP), and Solana (SOL), retreated less than 5 %. Top Lagard fell in two digits in Dexe, Raydium, Jupiter, and Pudgy Penguins.
A well-known economist, including Mohammed EL-Erian, hopes that the Federal Open Market Committee (FOMC) will not change to 4.50 %.
It is not surprising that staff have been suggested multiple times since the reduction of 0.25 % from the December meeting. The accompanying dot plot pointed to only two cuts from the four guidance this year.
Therefore, the initial rate decision will hardly affect the price of bitcoin and Altcoin. Instead, Jerome Powell's statement about what is expected in the latter half of this year will be the main catalyst.
Based on recent economic data, he is unlikely to change his stance on two interest rates. Inflation remains stubborn, and the headline consumer price index has increased from 2.7 % in November to 2.9 % in December. Core inflation exceeds 3 % and exceeds 2 % of the Fed.
The Fed hopes that inflation will rise longer, especially if Donald Trump is promoting imported duties proposed. Other risk assets such as bitcoin and stocks often decrease when the Fed adopts a hawks.
The price of bitcoin forms a dangerous pattern prior to the Fed
The price of Bitcoin is at risk that it will decrease after the FOMC decision. This is because a double top pattern was formed on the daily chart. This pattern is composed of two twin peaks, which is $ 108,180 in this case. There is also a $ 88,913 neckline. The asset often experiences a bearish breakout after forming a double top pattern.
Another risk is that Bitcoin forms a bear from a bearish divergence pattern on a daily chart. This has been demonstrated by the declining moneyflow index, relative strength index, and MACD indicator.
Thus, double -top patterns, weakness, and combination of Hawkish Fed suggest that bitcoin may decrease after the FOMC statement. Such a decrease may be pushed down to a neckline at $ 88,913.
Bitcoin's weak failure can lead to further downside of altcoins such as Ethereum, Sorana, and Polkadot. Conversely, if Bitcoin jumps the best in history, these altcoins may rebound.
