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Bitcoin Falls Back Ahead Of The High-Stakes Fed Decision

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Aayush Jindal

Key Highlights

  • Bitcoin failed to surpass $65,650 and started a fresh decline.
  • A key bearish trend line is forming with resistance at $64,500 on the 4-hour chart of BTC/USD.
  • Ethereum also struggled above $1,920 and dipped from resistance.
  • The Fed interest rate decision is scheduled, and the market forecast is no change from 3.75%.

Bitcoin Price Technical Analysis

Bitcoin price attempted to gain pace for a move above $65,500 against the US Dollar but failed. BTC trimmed most gains and signaled a downside break.

Looking at the 4-hour chart, the price formed a high near $65,688 and started a fresh decline. There was a move below $65,000 and $64,200. The price traded below the 76.4% Fib retracement level of the upward move from the $63,647 swing low to the $65,688 high.

More importantly, BTC settled below the 100 simple moving average (red, 4-hour) and tested the 200 simple moving average (green, 4-hour). If the bears remain in action, the price might find bids near the 1.236 Fib extension level at $62,385.

A downside break and close below $62,385 could trigger a sharp decline. In the stated scenario, the price could test $61,200 or even $60,500.

On the upside, an immediate resistance could be $64,200. The first major resistance might be $64,500 and a bearish trend line. The main resistance might be $65,650. A close above $65,650 could send the price toward $66,800. Any more gain might call for a test of $68,000.

Looking at Ethereum, the price trimmed some gains, and the bears might now aim for a drop below $1,820.

Today’s Key Economic Releases

  • Fed Interest Rate Decision - Forecast 3.75%, versus 3.75% previous.
  • Fed Monetary Policy Statement.
  • FOMC Press Conference.
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