ccording to Bitfinex’s latest report, Bitcoin is set to experience high volatility post FOMC meeting, as the FED is expected to change monetary policies after many months of rate hikes. The market expects the FED to cut rates which could provoke a reaction from the market. There are many opposing thoughts and uncertainty by investors on how a rate cut would affect the market, hence why volatility is expected.
Bullish Market Indicators
The report indicates that despite Price volatility in Bitcoin and Altcoins, there are several bullish indicators to take into consideration. First of all the report states that a local bottom at the $52,000 range is very probable, secondly, recorded positive inflows from Bitcoin ETFs is a sign to consider, and finally recent Bitcoin price increase was driven by Spot buying and not derivatives.
Price Resistance and Open Interest
Bitcoin is currently trading at $60,467 which puts it at the doorstep of a highly significant resistance band of $60,500-$61,000. Overall Bitcoin Open Interest in perpetual trading pairs has increased by roughly 14% since the price went below $53,000, as we can see the trend in the chart above.
Fed Decision May Spark BTC Volatility
Bitcoin is approaching key resistance levels during the week that may see high volatility and traders and investors should expect fast and large price fluctuations. The short-term direction of Bitcoin’s price seems to be closely tied to the decision the Federal Reserve makes on interest rates.
