- The Bitcoin price closed below $23,000 last week.
- Thus, the recovery that has been starting since last week shows weakness again.
- The upcoming FOMC meeting on Wednesday should be trend-setting.
The Bitcoin price closed significantly lower last week at $ 22,582. As a result, the closing price was not only below the 23,000 US dollar mark, but also below the 200 MA line. So far, it was this line in the weekly chart that marked the turning point after a bear market or crash.
However, this indicator should be treated with caution. On the one hand, bottoming only happened twice at this point, on the other hand, the price never finished below the moving average. However, this was already the case in mid-June and now the bulls failed to jump over the line last week.
The fact that the recovery was rejected again right at this point could speak for a continuing bearish trend. However, the volume is rather low and there are no stronger price fluctuations, which in turn speaks for a sideways movement.
A tough summer
Currently, there is no momentum in the market and it seems that most traders remain in a waiting position with their capital. If the weak sell-off continues, the bears will encounter a possible support for the price at about $ 21,600.
If this does not hold, then the next stop would be at 19,000 US dollars. Overall, a scenario that was already observed last summer is likely. So it would not be surprising if the rest of the summer remains within a range that occasionally has deviations or failed breakout attempts.
FOMC meeting on Wednesday
The only event that could put a stop to this thesis is the FOMC meeting of the Fed. After the meeting of the US Open Market Committee, it is expected that they will again comment on the monetary policy stance and further interest rate increases.
So far, the decisions from the previous sessions have dominated the stock and crypto markets. Therefore, the next meeting or subsequent press conference should again determine the direction of action.
It will be decisive here whether the Fed ultimately meets, falls below or exceeds expectations regarding further interest rate increases.
The articles published on our website reflect the personal opinion of the editors and their personal assessment of the market situation. They do not constitute investment advice or recommendations. All publications are for information purposes only. They are not adapted to your individual situation and cannot and should not replace personal and qualified investment advice with qualified advisors. Trading cryptocurrencies is always a risk. If you use the information offered here or follow advice, you act on your own responsibility.
