FOMC Day: Bitcoin Could Plunge to $28,500 or Rise to $29,500?

Summary of the Article

  • Bitcoin is currently stuck in a narrow trading range, which could signal a healthy period of accumulation before its next big move.
  • The BTC price recently dropped below some key support levels and could see further losses if the bears gain control.
  • The upcoming FOMC meeting might not result in large price fluctuations, but anything unexpected from Jerome Powell could cause a sharp drop.

Will Bitcoin Price Plunge Below $28,800 or Rise Above $29,500?

Bitcoin has been trading within a tight range over the past couple of days, indicating that buyers may be accumulating ahead of a possible breakout. The recent dip below the multiweek trading range has caused some concern among traders as to whether or not the bears have taken control. The upcoming Federal Open Market Committee (FOMC) meeting may also play a role in determining where Bitcoin’s price goes next. Here’s an overview of what to expect.

Where is Bitcoin’s Price Now?

Currently, Bitcoin is testing some crucial support levels and should it fail to hold up at these levels, another bearish wave may be triggered. This would likely push the price down towards new monthly lows near $28,500 according to popular analyst Michael van de Poppe . Onchain activity appears to be increasing with the monthly average of new wallets surpassing that of last year. However, this doesn’t necessarily mean there will be strong buying pressure once again as investors remain cautious when it comes to making long-term investments at this time.

What Can We Expect from FOMC?

Many believe that another 25 basis points are expected to rise by nearly 98% of market participants; however, nothing out of the ordinary is expected from this meeting and thus no major swings in price are likely to occur upon its conclusion. That being said, any unexpected comments from Jerome Powell could potentially send shockwaves throughout the markets and cause an abrupt drop in price for Bitcoin and other cryptocurrencies alike.

What’s Next for Bitcoin?

Given all this information it appears that traders should prepare for further losses if BTC fails to hold up above key support levels. However, should buyers manage to defend against these levels then we may see another bounce back up towards $30k before continuing on its journey higher or lower depending on which side takes control first. It all remains uncertain at this point so keep an eye on how things develop over the coming weeks as we await further clarity on what lies ahead for Bitcoin’s future trajectory.