Bitcoin and Ethereum have been trending lower ahead of this week’s Fed meeting

Uncertainty is rising around Bitcoin and Ethereum ahead of this week’s Federal Open Market Committee. In addition, upcoming earnings reports from the five largest U.S. technology companies and other balance sheets could impact crypto-currency prices in the coming days.

Bitcoin and ethereum brace for volatility

Crypto-currency market participants are placing special emphasis on the upcoming Federal Open Market Committee meeting, which will take place on Wednesday, July 27. The Fed is expected to proceed with another 75 basis point interest rate hike in an attempt to curb U.S. inflation, which hit a 40-year high of 9.1% last month. A rate hike could prompt some crypto-currency investors to sell their holdings and take profits, as high interest rates tend to have a negative impact on risky assets.

U.S. gross domestic product for the second quarter of the year is also due to be released this Thursday, which could spark new fears around the possibility of a U.S. recession. The economy contracted by 1.6 percent in the first quarter, and this week’s figure is expected to show 0.5 percent growth in the second quarter. However, if growth is slower than expected or if there is another retraction, this could be seen as another sign that the U.S. has entered a recession.

Read:  The urgency of living with metastatic triple-negative breast cancer

Heading into one of the busiest weeks of the summer for crypto, bitcoin fell 3.7 percent early Monday. The leading crypto currency has fallen from a high of $22,580, hitting a low of $21,750. While it has rebounded in recent hours to $22,050, its next move remains uncertain.

On the four-hour chart, bitcoin’s recent activity indicates a crucial price point. The Tom DeMark (TD) Sequential Indicator’s support trend line at $21,700 must be maintained to avoid further losses. If bitcoin fails to hold this level, it could suffer a decline toward the 200-hour moving average at around $20,800.

Read:  SEC judges Kim Kardashian for supporting EMAX, orders her to pay $1.26 million

Bitcoin would likely have to break through the 50-hour moving average at $22,700 to have a chance of reaching higher highs. Breaching this important resistance level may give it the strength to retest its July 20 high at $24,290.

Ethereum also started the week in the red, losing over 100 points in market value. The sudden drop pushed ETH toward the lower boundary of a parallel channel at $1,500, where prices have been consolidating for the past week. This crucial support area must hold to avoid triggering a retracement to $1,360.

Based on recent price action, Ethereum appears to need to print a four-hour closing candlestick above $1,670 to advance further. If it can do so, it will have a better chance of making a breakout towards $1,850.

The Best Online Bookmakers February 29 2024

BetMGM Casino