Yesterday we were talking about the possibility of Bitcoin going up to 40,000 after the FOMC meeting. Today we are trying to understand where the price of Bitcoin will stop its fall. As we expected, the FOMC meeting provided only short-term support. The optimism that gripped global markets after the Federal Reserve meeting quickly faded.
As the time of publication, the price of Bitcoin has dropped below 36,000. It is the minimum for three months. This year, the BTC price has already fallen below 35,000 on January 22nd.
Naturally, Bitcoin pulled down the entire cryptocurrency market. The prices of Solana, Polkadot, Avalanche and many others have dropped significantly.
The FOMC meeting only helped Bitcoin add about $1,000. Then the sellers returned to the market and brought down the price of Bitcoin and also the S&P500.
In the current situation, analysts do not rule out a decline in the price of Bitcoin to $32,000. Rising interest rates are the biggest risk for Bitcoin. The Federal Reserve has already raised interest rates twice this year and is expected to do so again to counteract excessive inflation.
However, due to the large number of factors influencing the price of Bitcoin, it is becoming increasingly difficult to predict its future price.
On the 4-hour chart, the BTC/USD pair broke through the downtrend line, which provided support in the 37,000 area.
On the daily chart, the BTC/USD pair used to move within an uptrend since the beginning of April it has started moving in a downtrend. Now it is clearly visible. In the current situation, the BTC/USD pair has the nearest support in the 35,000 area. A downward breakdown of this level will send the BTC/USD pair to the 30,000 area.
If the bulls can stop the price drop and keep the BTC/USD pair above 35,000, they will try to bring it back to the 36,500 area. A move above this level will allow the BTC/USD pair to rise to the 37,500 resistance area.