Bitcoin (BTC) is experiencing a drop in price during the week of March 19, leaving traders and analysts wondering where the price will ultimately land. After reaching new all-time highs, Bitcoin is now testing levels that were recently established as support. However, a solid floor has yet to be found. As a result, market observers are looking for more fundamental indicators while also preparing for a possible relief bounce.
Some experts believe that the decision on interest rates by the United States Federal Reserve, scheduled for March 20, could alleviate pressure on oversold crypto assets. It is common for risk assets to be suppressed in the lead-up to Federal Open Market Committee (FOMC) meetings.
In terms of short-term predictions for BTC/USD, there are several popular opinions. One trader, George, believes that Bitcoin will at least reach the low point of the previous week. Another trader, Ali, analyzes the realized price distribution (URPD) to identify key support levels at $61,100, $56,685, and $51,530. These levels indicate areas of interest for support and resistance.
Using Fibonacci retracement levels, analyst Mark Cullen identifies multiple support levels that could come into play. He also notes a “bullish order block” of bids just below the current spot price of $64,000. Cullen suggests that the correction’s end will depend on the outcome of the FOMC meeting.
The FOMC meeting is not only a focus for Bitcoin and altcoins but also for the broader risk-asset spectrum. Financial commentator Tedtalksmacro predicts that the lower the market goes before the meeting, the higher it will rise once Fed Chair Jerome Powell speaks. Tedtalksmacro believes that Powell will adopt a hawkish tone in order to reset market expectations of a rate cut.
Currently, BTC/USD is experiencing volatility around $64,000. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any decisions.