Bitcoin Price Plunges Before FOMC Amid $17.6K Low Warning Wasn’t Bottom

Bitcoin (BTC) fell to weekly lows at Wall Street’s August 17 open as upcoming comments from the Federal Reserve unsettled risk assets.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

Dollar climbs as Fed minutes expire

Data from Cointelegraph Markets Pro and TradingView tracked a daily decline of more than 2% in BTC/USD, which hit $23,325 on Bitstamp.

Already showing signs of weakness, the pair slid further as US stocks began trading, hours before the Federal Open Markets Committee (FOMC) released the minutes of its last meeting.

Although it won’t involve an interest rate decision, the meeting was chosen to provide insight into the Fed’s thinking regarding the upcoming rate adjustment scheduled for September.

“The important event tonight with the FOMC minutes, through which information can be received if the FED is going to be hawkish or dovish,” said Cointelegraph contributor Michaël van de Poppe. abstract in his latest Twitter update.

“I don’t think it will have a massive impact, however, crypto tends to give it a ton of value and therefore a lot of volatility.”

Stocks hit major resistance in line with the crypto over the week, leading some worried sources to continue predicting a new major retracement across the board.

Justin Bennett, the founder of crypto education platform Crypto Academy, warned that the S&P 500 was copying behavior from immediately before the 2008 global financial crisis.

“It’s breathtaking. The S&P 500 mimics the crash of 2008. Even the timing from the ATH is almost identical,” he said. commented on a comparison table.

“The fund is NOT for stocks or crypto.”

A telltale sign of the day came in the form of a rally in the US Dollar, with the US Dollar Index (DXY) looking to attack the resistance in place throughout August.

“$DXY could be on its way to 112-113 after the fake below 105.50. This will weigh on stocks and crypto,” Bennett added.

US Dollar Index (DXY) One-day candle chart. Source: Trading View

Buyers consider lower offers

On shorter timeframes, the trend on Bitcoin was also quickly running out of steam as bid support slightly diminished Binance’s order book.

Related: Bitcoin price sees firm rejection at $24.5,000 as traders doubt strength

On-Chain Monitoring Resource Material Indicators capture the action, concluding that “even if we get another pump, still believe the bear market rally is losing momentum.”

An upside target could take the form of the 100-day moving average, a separate post Explainstanding at $24,544 at the time of writing.

“I warned about this outage for Bitcoin in the last few days,” commentator Matthew Hyland concluded.

“The structure has changed globally weak recently. The market seemed to have its first signs of life last week. It seems to be short lived.

Buy and sell levels BTC/USD (Binance). Source: Materials Indicators/Twitter

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