Expectations that Bitcoin will return to the upside ahead of the Federal Reserve meeting this week

I witnessed Digital Currency Markets High volatility this weekend, due to the return of fears of a rise in American interest rates at the meeting of the American Federal Monetary Policy Committee (FOMC) scheduled for next Wednesday.

And he witnessed Bitcoin BTC Price A wave of downward correction, the first in several weeks. It fell by over 12.5% ​​to the $65,500 level. Before coming back, it pared its losses by climbing up to the 67,900 level in the early hours of Monday.

Inflation fears and falling interest rates

Assigned by experts and analysts Decline of Bitcoin The digital currency market has been affected by several factors, including the decline in Bitcoin ETF momentum. Which saw a decline in inbound investment volume of 48% compared to its 14-day average.

Analysts also highlighted the impact of US economic data released last week, as shown Producer price index (PPI) rose more than expected, reinforcing expectations that the US Federal Reserve would keep interest rates at their current high levels.

As a reminder, the strong bullish wave that resulted from the entry into the spot Bitcoin ETF market. Market expectations that the Federal Reserve would stop its monetary tightening and begin cutting rates in 2024 were among the most important factors supporting the Bitcoin price rally in the final months of 2023.

Although the market is optimistic due to the high demand for Bitcoin ETFs, it remains attentive to what is happening in terms of numbers and macroeconomic data.

This is exactly what we have seen with the return of concerns about inflation and a possible rise in interest rates in the United States of America, especially as the rise in the price of the dollar affects it negatively .

Traders are closely watching the Federal Open Market Committee (FOMC) meeting this week as well as US cash Purchasing Managers' Index (PMI) data for March. Its results will be among the most important topics affecting financial market movements this week.

Redeem Bitcoin ETFs

Despite the decline observed by Bitcoin over the weekend, most analysts see it as a normal and expected correction movement. They believe that the market price of Bitcoin will resume its rise, based on the possible return of Bitcoin ETF purchasing activity this week.

In this context, Thomas Fahr, CEO of Apollo, a portal focused on evaluating cryptocurrencies and tracking the movements of exchange-traded funds, said that the current decline is a “bear trap” and that a new wave of liquidity will drive up the prices of digital currencies. upper.

Fire highlighted the possibility of significant institutional investments worth $150 billion entering the cryptocurrency market in the coming months. This explains his extreme optimism.

Technical analysis of Bitcoin BTC price

Looking at the 4h chart, we notice that... Bitcoin BTC Price It greatly respects the Fibonacci retracement levels that we have drawn The report The first, despite the strong price fluctuations.
This means that we can use these levels as references to enter and exit trades (for traders). Or to ride the long wave of long-term investors.

Most of the bearish wave candles closed around the 38.2% level at $65,500. And currently BTC Price It is below the 23.6% level, at $68,500.

In technical analysis, generally, unless the price exceeds the 61.8% level, the decline is classified as a correction. But in current market conditions, volatility is high. You can pressure the price to fall below this figure, and it recovers just as quickly.

We must not forget that mainstream fundamental analysis asserts that the current price rise "is only the beginning of a long upward trajectory."

“Multi-billion dollar net inflows (into Bitcoin spot ETFs) in just two months have irreversibly changed the landscape,” they claim.