URGENT UPDATE: Bitcoin has just plunged to $113,000 as the S&P 500 reaches a new all-time high, creating a notable divergence between cryptocurrency and traditional stocks. This drop comes as markets eagerly await the Federal Reserve’s interest-rate announcement, expected to be a critical moment for traders.
As of now, Bitcoin is struggling to maintain its footing after failing to break through the $116,000 resistance level. The cryptocurrency has retraced from local highs, focusing on key price targets of $111,000 and $114,500 for the upcoming week. Analyst Rekt Capital notes that Bitcoin’s 21-week exponential moving average is currently hovering around $111,000, indicating potential volatility ahead.
Trader Daan Crypto Trades highlighted that the 200-period EMA on the four-hour chart stands at $113,100. He emphasized that Bitcoin remains within a defined trading range, with significant boundaries set at $116,000 and $107,000.
While traders are on edge, trading resource QCP Capital has suggested that the Federal Reserve’s upcoming announcement by Chair Jerome Powell is likely to be a “non-event” for the cryptocurrency market. “Tonight’s FOMC is widely expected to be a non-event. The Fed is set to deliver a 25 basis points cut, consistent with its September dot plot, and Powell is unlikely to offer new forward guidance,” the firm stated. They highlighted that the absence of official data since the U.S. government shutdown leaves the Fed “effectively flying blind,” making significant policy changes premature.
This situation is critical for investors and traders alike, as Bitcoin’s position could significantly impact broader market sentiment. The anticipated interest rate cut is seen by some as a bullish signal for cryptocurrencies, potentially providing the necessary momentum to break through the stagnant price levels.
As traders keep a close eye on the developments, the immediate future for Bitcoin remains uncertain. Will it rebound to challenge the $116,000 resistance, or will it continue to slide down towards the $111,000 support? The outcome of the Fed’s decision could play a pivotal role in shaping the trajectory of Bitcoin and the entire crypto market.
Stay tuned as more updates are expected shortly.
