The FOMC meeting during the previous week was the pivotal point for markets. As the Fed decided not to cut, which was widely expected, however, they have changed their forecast for the end of this year, which includes only one rate cut. This was the information which impacted the markets to reassess their current strategies, and adjust it in accordance with anticipations and newly provided information. The crypto market followed general sentiment and entered into short correction. For some time in the past BTC price was trying hard to sustain levels above the $70K, however, there has not been market strength for such a move. It was a question of time when the price will enter into correction and a quest for a new equilibrium in order to start a new round of volatility. The FOMC meeting was that moment.
BTC price started the previous week above the $ 69K level, however, the lowest price reached during the week was $65.1K. The support line at $ 65K has been tested on one occasion. The RSI reached the level of 42, but it is still not in the oversold market side, which leaves some space for a price further correction, in order for BTC to reach a clear oversold momentum. Moving averages of 50 and 200 days continue to move as two parallel lines, not indicating that the cross might come soon, and in line with it a potential for a trend change.
A move toward the $ 65K might look painful for some traders, however, it is actually a good move. During the last two weeks the market was completely exhausted at levels around $70K, imposing a question when the trading is going to completely stop. The market was looking for a new equilibrium price, where the new volatility cycle will start and provide some new fund inflows into the market. Now, the main question is whether the cycle is over at
65K
? For the week ahead it might be. But, charts are showing potential for lower levels in the future period. However, for the following week, the market will eventually look for a short consolidation around the $ 65K up to $67K. Eventually, a triggered demand might also push the price toward the $70K. However, at this moment, a move above the $70K does not look much probable.
BTC price started the previous week above the $ 69K level, however, the lowest price reached during the week was $65.1K. The support line at $ 65K has been tested on one occasion. The RSI reached the level of 42, but it is still not in the oversold market side, which leaves some space for a price further correction, in order for BTC to reach a clear oversold momentum. Moving averages of 50 and 200 days continue to move as two parallel lines, not indicating that the cross might come soon, and in line with it a potential for a trend change.
A move toward the $ 65K might look painful for some traders, however, it is actually a good move. During the last two weeks the market was completely exhausted at levels around $70K, imposing a question when the trading is going to completely stop. The market was looking for a new equilibrium price, where the new volatility cycle will start and provide some new fund inflows into the market. Now, the main question is whether the cycle is over at
65K
? For the week ahead it might be. But, charts are showing potential for lower levels in the future period. However, for the following week, the market will eventually look for a short consolidation around the $ 65K up to $67K. Eventually, a triggered demand might also push the price toward the $70K. However, at this moment, a move above the $70K does not look much probable. 