- U.S. financial markets witnessed a negative trend a day after the Federal Reserve adopted a tighter monetary policy at the September 2023 Federal Open Market Committee (FOMC) meeting.
- Popular analyst CrediBULL Crypto stated, “We can technically turn around at any moment,” and added that traders’ sensitivity to liquidations could determine the extent of downside risk.
- Jerome Powell stated that central bank officials voted to maintain the current tight monetary policy stance.
As the Bitcoin price dropped below $27,000, it entered a downward trend again. Could BTC price drop further?
Are There Downside Risks in Bitcoin Price?
U.S. financial markets witnessed a negative trend a day after the Federal Reserve adopted a tighter monetary policy at the September 2023 Federal Open Market Committee (FOMC) meeting. The Dow Jones Industrial Average (DJIA) fell by 0.4%, the S&P 500 Index decreased by approximately 0.9%, and the Nasdaq Composite Index experienced a 1% decline, while the Bitcoin price underwent a 2% correction.
During the ongoing correction, leading crypto analysts are predicting that cryptocurrencies could turn bullish at any moment. Popular analyst CrediBULL Crypto stated, “We can technically turn around at any moment,” and added that traders’ sensitivity to liquidations could determine the extent of downside risk. The analyst believes that BTC price is currently facing ideal downside risk around $25,500 and predicts that technically, there could be further downside risk just below $25,000.
“If RED (below $25,000) is our bottom, then this move could ideally liquidate Bitcoin’s open positions and be the final move of this week’s long corrective structure, opening the way for the next uptrend.”
During the press conference after the FOMC meeting, U.S. Federal Reserve Chairman Jerome Powell stated that central bank officials voted to maintain the current tight monetary policy stance. Markets reacted negatively to Powell’s statement, as they believed it indicated that policy makers thought the next interest rate hike from the current target interest rate of 525-550 basis points was likely.
What Lies Ahead for BTC?
It should be noted that Bitcoin has been trading sideways around the $26,000 level for the past five weeks. The victory in the Grayscale case at the end of August 2023 did not boost the BTC price, and the recent excitement around spot Bitcoin ETFs seems to have faded.
