URGENT UPDATE: Bitcoin has plunged to $113,000 as the S&P 500 reaches a new all-time high ahead of the Federal Reserve’s anticipated interest rate announcement. This sudden shift comes as traders brace for potential volatility in the crypto markets.
Bitcoin’s recent decline marks a significant drop from its local peak of $116,000. As investors await the Fed’s decision, the cryptocurrency market is feeling the pressure, with analysts eyeing potential support levels at $111,000 and $114,500 for the week.
Market expert Rekt Capital has pointed out that Bitcoin’s 21-week exponential moving average is currently hovering near $111,000, suggesting that this level could be crucial for future price stability. Meanwhile, trader Daan Crypto Trades has highlighted the 200-period EMA on four-hour time frames, which stands at $113,100, indicating a critical range for Bitcoin’s movement.
As the Federal Reserve prepares to announce a likely 25 basis points (bps) rate cut, trading resource QCP Capital notes that this meeting may largely be a “non-event” for crypto markets. In their latest analysis, QCP stated,
“Tonight’s FOMC is widely expected to be a non-event… Without inflation or labor prints, any policy recalibration would be premature.”
With inflation data unavailable due to the recent U.S. government shutdown, the Fed’s decision is shrouded in uncertainty, leaving traders anxious about the impact on Bitcoin’s price. The atmosphere is tense as Bitcoin’s price fluctuates within a range defined by key levels: resistance at $116,000 and support near $107,000.
As traders focus on the upcoming Federal Reserve meeting, Bitcoin is poised for a potential record monthly close. However, many are left wondering if the anticipated rate cut will provide the necessary boost for Bitcoin to break through the $116,000 barrier.
What happens next is crucial. Analysts are closely monitoring both the Fed’s announcement and broader economic conditions, including developments in the U.S.-China trade talks, which could further influence market sentiment.
Stay tuned for updates as this story develops. The crypto market remains highly volatile, and these next few hours could significantly shape Bitcoin’s trajectory. Investors are urged to stay informed and prepared for rapid changes in market dynamics.
