With the day of the Federal Reserve’s policy decision having arrived, traders saw crypto hit a wall, with the market likely being cautious.
The crypto markets have been eagerly waiting for a positive outcome on the upcoming Federal Reserve meeting, which is crucial at a time when the industry has been reeling under regulatory pressures. Just a week back, the Security and Exchange Commission had started a legal battle against major crypto firms, initiating a session of panic sell-offs and downward trends in the market.
Fortunately, the markets have bounced back from their lows, as crypto hit an upper circuit at the beginning of the week. Currently, Bitcoin has crawled back just below $26000, but it could soon cross its resistance if the Fed meeting turns favorable.
After consecutive sessions of interest rate hikes, inflation has been controlled considerably in the US, with multiple economic indicators pointing at an improving economy. Should the interest rate hikes be paused this month as expected, a new crypto rally could start soon with the new liquidity in the market.
While Bitcoin’s immediate resistance is at $26000, its psychological support at $25000 is firm. Experts believe if the overall market cap of the crypto market increases while Bitcoin’s support stays the same, it could bode well for a new rally.
BTC/USD 1D price chart
Bitcoin is currently trading at around $25900 on June 14, 2023, with BTC/USD down by around 0.8% in the previous 24 hours. BTC/USD is trading below its 20-day EMA (26,684.86) as BTC’s 24-hour volume stayed constant at $8.5 billion. Bitcoin has seen around 56.42% returns on a year-to-date basis.