All Eyes on the Fed’s Interest Rate Decision: What Path Will Bitcoin Take?

• Ahead of the Federal Open Market Committee (FOMC) Meeting scheduled for September 20th, interest rate traders are carefully preparing to assess Bitcoin price fluctuations.
• Following the mid-August decline, BTC’s price movement has closely followed the range low of $25.8K. On August 29th, there was a 6% increase attributed to Grayscale’s victory in front of the SEC, catalyzing the rally.
• If sellers break the daily bullish order block ($24.8K – $26K), they may gain more leverage. Such a move could alleviate the next support and the weekly bullish order block ($21.4K – $23.45K).

Last 9 days for FED’s interest rate decision: What path will Bitcoin follow as the FED’s interest rate decision approaches? Important price ranges of BTC!

The Fed’s Interest Rate Decision Looms

Before and after the Fed’s interest rate announcement, there is expected market volatility. More than 90% of the surveyed traders lean towards the likelihood of the Fed’s interest rate target range remaining unchanged at 5.25% – 5.5%. Therefore, if the Fed halts interest rate hikes, a repeat of the June price action cannot be ignored.

In mid-June, BTC experienced a significant recovery driven by the Fed’s pause in interest rate hikes and the hype surrounding ETF (Exchange-Traded Fund) applications by BlackRock and other companies.

Following the mid-August decline, BTC’s price movement has closely followed the range low of $25.8K. On August 29th, there was a 6% increase attributed to Grayscale’s victory in front of the SEC, catalyzing the rally. However, this gain was short-lived and pulled BTC back to the range low.

This pullback left a price imbalance between $26.1K and $27.0K. Additionally, the price action was below the 50-day Exponential Moving Average (EMA), which could serve as dynamic resistance ahead of the Fed’s decision. Therefore, if the Fed’s decision is favorable, BTC may attempt to fill the price imbalance and retest the mid-range around $27K.

On the other hand, if sellers break the daily bullish order block ($24.8K – $26K), they may gain more leverage. Such a move could alleviate the next support and the weekly bullish order block ($21.4K – $23.45K).

Meanwhile, the Relative Strength Index (RSI) has struggled to rise above the 50 level since mid-July, reinforcing weakened buying pressure. The Chaikin Money Flow (CMF) has followed the RSI’s trend but crossed above zero on September 4th, indicating improved capital inflow to the BTC market last week.

Significant buy and sell limit orders at $25K and $28K

According to Mobchart, a real-time order tracking platform, there are significant buy and sell limit orders currently placed at $25K and $28K. This suggests that BTC’s wild price swings could reverse at these levels. However, Ethereum may surpass BTC in the short to medium term with the expected approval of an ETH ETF in the U.S. as early as October.