Bitcoin Price Update: BTC Dips to $58K Ahead of Fed Decision

Bitcoin’s price continues to hover around the $60K mark, but an aggressive movement could initiate soon.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

Examining the daily timeframe, it’s clear that the price has not yet managed to decisively recover above the $60K threshold following its swift rejection and decline from the 200-day moving average, which can be found near $63K.

After a recent rebound from the $52,500 mark, the price has once again approached this crucial range. This is significant as a new market rally will require a break above both the $60K level and the 200-day moving average first.

The 4-Hour Chart

Analyzing the 4-hour chart, we can see that the price is in a critical zone, testing a bullish trendline that has been maintained over the past few weeks.

If the trendline remains intact, a breakout above $60K is quite likely. Conversely, a breakdown from this range could lead to a decline towards $57K and potentially down to the $53K region in the weeks ahead.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Bitcoin Funding Rates

The futures market has significantly influenced Bitcoin’s short-term price dynamics in recent years. Thus, examining its sentiment can yield valuable insights.

This chart illustrates Bitcoin’s funding rates metric, highlighting the balance between buyers and sellers in the futures market. Positive values signify bullish sentiment, while negative rates are indicative of fear and bearish sentiment.

The chart clearly shows a marked reduction in funding rates during the latest price consolidation and correction phases, as numerous futures traders were either liquidated or altered their market outlook, shifting to the sell side.

While this represents a strong bearish sentiment signal, it may also indicate that the market has cooled off, suggesting that with enough buying pressure, a sustainable rally could commence shortly.

The post Bitcoin Price Analysis: BTC Dips to $58K in Anticipation of This Week’s Fed Rate Decision appeared first on CryptoPotato.