BTC bulls are trying to recover, after sliding almost as low as ~66000 yesterday, as investors prepare for key US macroeconomic data and the Fed meeting scheduled for later today.
Bitcoin may experience a high level of volatility following these events, given its high level of responsiveness to macroeconomic stimulus in the recent past.
The markets will primarily focus on the FOMC’s outlook for key interest rates – the “dot plot”, which contains information on how many potential rate cuts are projected for this year.Higher for longer interest rates could undermine demand for riskier assets such as bitcoin.A higher-than-expected CPI reading may also contribute to higher interest rates remaining for a longer period of time than originally anticipated.On the demand side, spot bitcoin ETFs have seen $200 million in outflows.Some of the largest outflows occurred in
Also on Monday, 11 BTC spot ETFs ended their 19-day streak of inflows, with total outflows reaching $64.93 million. Since its inception, spot bitcoin ETFs have seen a total net inflow of $15.42 billion.
From the technical perspectiveBitcoin is trading above its 50- and 100-period SMAs, indicating a potentially bullish long-term trend.However, the 21-period SMA is currently above the current price, suggesting a potentially bearish short-term trend.The Relative Strength Index is in neutral territory, reflecting the market’s current state of uncertainty ahead of today’s major macro events.On the upside, the 21-period SMA may be the next major target/resistance level for the BTC bulls, while on the downside, the 100-period followed by the 50-period SMA are set to provide immediate support for the major cryptocurrency.More By This Author:This Week: USD To Break Out Of Its Recent Downtrend? Brent Rebound Could Be Tested By US Jobs Report US Stock Indexes Hit New Record Highs
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