The uncertainty could end in the coming days, as a significant economic event for all global markets will take place this week.
The Federal Reserve will meet on Wednesday night and although the market almost certainly anticipates that the Fed will refrain from raising rates, the event is likely to significantly impact BTC and ETH.
According to CME’s FedWatch tool, investors are pricing in a 98% probability that the Federal Reserve will not raise rates this week. On the other hand, almost a third of market participants expect the central bank to resume rate hikes at its next meeting scheduled for November 1.
In this context, the details of Jerome Powell’s statements on Wednesday, as well as the new forecasts The Federal Reserve’s economic forecasts and the dot plot should help clarify these expectations.
Should the Fed suggest that it will raise rates again before the end of the year, the dollar should benefit. to the detriment of Bitcoin. If, on the other hand, the details provided by the Fed lead investors to believe that the rise in US rates is over, bulls should take control of the cryptocurrency.
As for specific news from the world of digital assets, traders will remain attentive to any new comments on the various BTC and ETH ETF proposals, cash currently being investigated by the SEC, the case of the sale of cryptocurrencies from the bankrupt platform FTX, which was at the origin of the market crash.
The cryptocurrencies observed last Monday will also have to be monitored, although the company has clarified that it will be careful not to impact the market with these liquidations.
From the point of view of technical analysis, it is worth noting that Bitcoin and Ethereum continue to show underlying bearish trends.
Will Bitcoin React Late to this Important Bearish Signal?
The cryptocurrency sent a particularly important negative signal last week, when its 50-day moving average crossed below its 200-day moving average, a signal commonly known as a “death cross.”
However, this signal has so far had no effect. However, it is not uncommon for BTC to rise immediately after recording a death cross, only to then crash a little later validating the signal with a time delay.
The cryptocurrency is currently in contact with a bearish trend line extending from the July peak, implying a risk of an imminent return to the decline.
In this case, the $26,000 and $25,000 areas will be the first potential supports to consider. If Bitcoin takes the upward path and manages to cross the aforementioned trend line (currently at $27,000), the next key hurdle will be the $28,000 area.
Can Ethereum Stay Above $1500 This Week?
The ETH/USD price presents a similar profile to that of Bitcoin, except that its death cross signal was recorded a week earlier, and that it has already partially produced its effect, resulting in a low of $1,530 last week, the lowest in 6 months.
In the immediate future, the cryptocurrency faces potential support at $1600 after which last week’s low will be in sight, ahead of the key threshold of $1500.
If ETH takes the upward path, the $1,700 threshold and the 50-day moving average at $1,711 will form the first hurdle to watch, before the August peak at $1,745.
By Audy Castaneda