It was a bearish Wednesday, with BTC falling 1.12% to end the day at $24,191. A mixed market reaction to the FOMC meeting minutes and sentiment towards Fed monetary policy and regulatory activity left BTC in the red.
On Wednesday, bitcoin (BTC) fell 1.12%. Following a 1.49% loss on Tuesday, BTC ended the day at $24,191. The bearish session left BTC below the $25,000 level for the second time in seven sessions. BTC fell to levels below $24,000 for the second time in five sessions.
A mixed start to the day saw BTC rally to an early morning high of $24,485. However, missing the first major resistance level (R1) at $25,071, BTC fell to a late afternoon low of $23,578. BTC briefly fell through the first major support level (S1) at $24,016 before ending the day at $24,191.
FOMC Meeting Minutes Leave BTC in Midweek Limbo
It was a busy midweek session, with the FOMC meeting minutes as the focal point. Following a series of better-than-expected US economic indicators, investors wanted to gauge how high the Fed is willing to go, and for how long.
However, the act did not bring surprises. High inflation, very tight labor market conditions and the need for more rate hikes were the highlights, with only two FOMC members favoring a 50-basis point rate hike at the meeting.
BTC and the broader crypto market responded to the minutes, partially reversing the losses for the session. The minutes are dated, however, with the US Jobs Report, CPI Report, Retail Sales and ISM Non-Manufacturing PMI Survey supporting a more hawkish Fed policy outlook.
Today, the BTC Fear & Greed Index was unchanged at 59/100. The index remained within the Greed zone despite the bearish BTC session, indicating investor resilience amid Fed policy uncertainty and an elevated regulatory risk environment.
Bitcoin (BTC) Action Price – Technical Indicators
This morning, BTC was up 0.03% at $24,199. A range-bound start to the day saw BTC fall to an early low of $24,166 before rising to a high of $24,236.
BTC needs to avoid the $24,085 pivot to target the first major resistance level (R1) at $24,591. A return to $24,500 would signal a breakout session. Crypto news wires and US stats should be crypto-friendly to support a prolonged rally.
In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $24,992 and resistance at $25,000. The third major resistance level (R3) sits at $25,899.
Looking at the EMAs and the 4-hour candlestick chart it was a bullish sign. BTC settled above the 50-day EMA ($24,057). The 50-day EMA has turned away from the 100-day EMA, with the 100-day EMA breaking out from the 200-day EMA, providing bullish signals.
A hold above the 50-day EMA ($24,057) would support a break of R1 ($24,591) to target R2 ($24,992) and $25,000. However, a drop through the 50-day EMA ($24 057) would give the bears a run to S1 ($23,684) and below $23,500. A drop through the 50-day EMA ($24,057) would send a bearish signal.
By Audy Castaneda
