Bitcoin
analyst says ‘we’ve seen this before’
The price of Bitcoin fell nearly 5% on Tuesday, hitting lows of $66K, as the crypto market turned negative ahead of this week’s FOMC meeting.
BTC price fell to lows of $66,018 on Coinbase to erase gains seen when prices reached highs of $71,974 last Friday.
CoinGecko data showed Bitcoin traded down almost 5% in 24 hours. The top cryptocurrency has pared weekly gains and is down 6% during this period at the time of writing.
Why did the price of Bitcoin fall on Tuesday?
The benchmark cryptocurrency’s struggles this week come after spot Bitcoin ETFs enjoyed a decent 19-day streak of net inflows on Monday. The data showed that the sector recorded outflows of around US$65 million.
Also on Tuesday, a Bitcoin wallet that had been dormant for over 5 years suddenly woke up and transferred 8,000 BTC worth over $535 million to multiple addresses, including Binance.
According to Lookonchainthis wallet received 8,000 BTC on December 6, 2018. The price of Bitcoin was $3,810 at the time.
Risk Mood Ahead of CPI and FOMC
While the price remains well above the psychological $60,000 level, upcoming FOMC minutes and comments from Fed Chairman Jerome Powell have investors paying attention.
It is in line with the global macro environment, including the economic reports expected this week, and market experts have signaled that this is a scenario that could be at the top of the list of factors for investors to consider.
“Markets are in risk-off mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which tells the market how many cuts the Fed anticipates for the rest of 2024,” analysts at QCP Capital, a global digital asset trading firm and market maker, said. he said.
Analyst: ‘we’ve seen this before’
While prices could fall further ahead of these macroeconomic reports and the Fed’s interest rate decision, pseudonymous crypto analysts Mustache and Max say the FOMC has been historically bullish on Bitcoin.
“FOMC tomorrow and $BTC form a bullish inverse head and shoulders pattern here. The latest FOMC meetings have already marked the drop in the left shoulder + head. The next right shoulder? Crypto trader mustache pointed to his 123,000 X followers.
Sharing a Bitcoin price chart with FOMC meetings mapped onto it, Max notes that the last three have coincided with a dip and then a move higher. “We’ve seen this before,” the analyst posted in X.
“Bitcoin loves to rally after every FOMC meeting,” another crypto analyst Ali Martinez observed.